Have you made plans to start a business in the United Arab Emirates? Getting a Tax Registration Number (TRN) is the first step in understanding the tax landscape of the UAE. If you’re wondering how to get tax registration number in UAE in a hassle-free way, you’re in the right place. Our blog is your ultimate guide filled with professional advice to understand the process of tax registration UAE. Let’s dive in and discover the keys to a smooth tax registration process!
Understanding The Process Of Acquiring UAE Tax Registration Number
The implementation of the value-added tax (VAT) system in the UAE has caused some confusion among people. The nation is unfamiliar with it, and not everyone is aware of what it is or how it works. However, those who are looking for a company setup in Dubai should know its importance to running a business successfully. You must complete and submit the relevant forms to the Federal Tax Authority as part of the VAT registration process to get a TRN. The FTA has made online registration portals available, making it convenient for applicants. Once you complete the registration and meet all the requirements, you will be issued a TRN. This number is essential for conducting business and making sure that tax regulations in the UAE are followed. You can take the help of a reputed tax firm based in UAE to register a company in Dubai and run it successfully.
What is Tax Registration Number (TRN)?
A Tax Registration Number Dubai (TRN) is a unique identification number assigned to businesses and individuals registered for value-added tax (VAT) purposes in the United Arab Emirates (UAE). Obtaining a TRN is a crucial step for businesses and individuals who wish to operate within the UAE’s tax framework.
A TRN is a 15-digit number issued by the Federal Tax Authority (FTA), the UAE’s regulatory body for tax-related matters.
To obtain a TRN in the UAE, businesses and individuals must first register for VAT with the FTA. Registration can be completed online through the FTA’s website or through a registered tax agent. The registration process requires the submission of various documents, including proof of identity, proof of residence, and business licenses.
Once registered for VAT, the FTA will issue a TRN number in Dubai to the applicant. The TRN number in UAE should be included in all VAT-related transactions and invoices issued by the registered entity.
It is important to note that failure to obtain a TRN or register for VAT can result in penalties and fines from the FTA. Businesses and individuals are also required to maintain accurate records of all VAT-related transactions and submit periodic VAT returns to the FTA.
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Procedure to apply for Tax Registration Number (TRN) UAE
A tax registration number (TRN) in the UAE is a distinct identification number issued by the Federal Tax Authority (FTA) to businesses and individuals operating in the United Arab Emirates. It is obligatory for all entities and individuals involved in taxable operations in the UAE, which include Value Added Tax (VAT) and Excise Tax.
If you are a new business or an individual intending to engage in taxable activities within the UAE, it is necessary to obtain a TRN registration. The process of acquiring a TRN registration in Dubai is relatively simple and can be accomplished conveniently through the FTA’s e-Services portal. Below is a step-by-step guide on how to apply Tax Registration Number (TRN) in UAE:
Step 1: Create an e-Services Account
Creating an e-Services account is an essential step in obtaining a tax registration number (TRN) in the UAE. To start the process, one needs to visit the Federal Tax Authority (FTA) website and click on the “Register” button. Once the registration type is selected, they will be prompted to enter their personal and contact details, along with the required documents. After submitting the application, they will receive an activation link on their email address, which they need to click to activate their account
Step 2: Fill out the Application Form
Once you have created an e-Services account, you can log in and access the TRN application form. It is essential to provide the correct information to avoid delays or rejections in the application process. Additionally, some application forms may require the attachment of specific documents such as proof of business ownership or a copy of a valid Emirates ID. It is important to review the requirements carefully before submitting the application.
Step 3: Submit Supporting Documents
To complete your application, please include the necessary supporting documents to verify your identity and business registration. The specific documents needed will depend on the type of entity you are registering and your business activities. Typically, you will be asked to provide copies of your trade license, passport, Emirates ID, and recent bank statements. It is crucial to ensure that all submitted documents are valid, precise, and current. Failure to provide the requested documents or providing incorrect information could lead to delays or rejection of your TRN application.
Step 4: Wait for Approval
Once you have submitted your application and accompanying documents, the FTA will proceed to review and authenticate your information for UAE TRN verification. Upon submission of the necessary documents and successful completion of the online application, the FTA will carefully examine your submission and may request supplementary information or documents if needed. It is crucial to provide accurate and comprehensive information to prevent any potential delays in the approval process. Please note that this procedure may take approximately 20 working days, and upon its completion, you will receive your TRN via email.
Step 5: Start Using Your TRN
Once you receive your TRN, you can start using it to register for VAT or Excise Tax and start engaging in taxable activities in the UAE. Make sure to keep your TRN safe and use it whenever you need to report or pay taxes.
Obtaining a tax registration UAE is a crucial step for individuals and businesses operating in the country. By following the necessary steps and submitting the required documents, the process can be completed smoothly and efficiently. It is important to keep in mind that compliance with tax regulations is essential for avoiding penalties and ensuring a successful business operation. Therefore, it is recommended to seek professional guidance if needed, to ensure that all tax-related obligations are fulfilled accurately and in a timely manner.
Frequently Asked Questions
1.What is a tax registration number in UAE?
A tax registration number (TRN) is a unique 15-digit identification number issued by the UAE Federal Tax Authority (FTA) to businesses that are required to register for VAT purposes.
2. Who needs to register for VAT in UAE?
Businesses that meet the mandatory registration threshold of AED 375,000 in taxable supplies over the previous 12-month period, or anticipate exceeding this threshold in the next 30 days, are required to register for VAT in UAE.
3. How do I apply for a tax registration number in UAE?
You can apply for a TRN through the FTA’s online registration portal by providing the required documents and information, including your business license, passport copies of shareholders and managers, and details of your business activities and financial transactions.
4. What is the deadline for registering for VAT in UAE?
Businesses that are required to register for VAT must do so within 30 days of reaching the mandatory registration threshold or becoming aware that they will exceed it.
5. Can I register for VAT voluntarily in UAE?
Yes, businesses that do not meet the mandatory registration threshold can still register for VAT voluntarily. This may be beneficial for businesses that want to reclaim VAT paid on their expenses.
6. What are the documents required to apply for a TRN in UAE?
The documents required to apply for a TRN include a copy of your business license, passport copies of shareholders and managers, details of your business activities and financial transactions, and a completed VAT registration form.
7. How long does it take to get a TRN in UAE?
The FTA aims to process VAT registration applications within 20 working days of receiving all the required information and documents. However, the actual processing time may vary depending on the complexity of the application.
8. Can I change my TRN details after registration?
Yes, you can update your TRN details, including your business activities, contact information, and bank account details, through the FTA’s online portal
9. What are the consequences of not registering for VAT in the UAE?
Businesses that fail to register for VAT or do not comply with VAT regulations may face penalties, fines, and other legal consequences.
10. How often do I need to file VAT returns in UAE?
VAT returns must be filed on a quarterly basis in UAE, with the deadline for filing and payment falling on the 28th day of the month following the end of each tax period.
11. Can I hire a tax agent to help me with VAT registration and compliance in UAE?
Yes, businesses can hire a tax agent who is registered with the FTA to assist with VAT registration, compliance, and other tax-related matters in UAE.
