TRN Verification or VAT Verification has become very important, considering the potential frauds involved with Value Added Tax (VAT). Miscreants can charge VAT using a fake TRN while pocketing the rest of the money which results in revenue loss for the government.
In this article, we will have a look at the steps to verify TRN in UAE.
What is TRN?
TRN and its full form
As per UAE VAT Laws, the word TRN stands for Tax Registration Number. TRN is a unique number issued by the Federal Tax Authority to a VAT registered business. In layman’s terms, it is also known as VAT Number or VAT Registration Number.
The Significance of TRN
The importance of a valid Tax Registration Number
As per UAE VAT Laws, businesses registered for Value Added Tax and having a valid Tax Registration Number must mention their TRN on all the invoices that they issue. The TRN is a 15-digit number that differentiates one registered business from the other. Further, the taxable person having TRN can only charge VAT on invoices.
VAT Laws in UAE also require businesses to mention TRN in all tax-related documents such as:
- Tax Invoice
- VAT Return
- Tax Credit Note and
- Other documents required to specify TRN as per UAE VAT Laws
TRN Verification: Why is it necessary?
The harms of a fake TRN Number
TRN Verification or Tax Verification is essential to make sure that the person charging VAT is a registered business with a valid TRN. The process of TRN Verification helps one to be sure of one’s TRN before making a transaction with him or issuing an invoice to him. If one pays VAT to someone without VAT verification then, the VAT so paid will not be available to him as the input tax credit. One can be sure of the genuineness of the person claiming to be a VAT registered business if he performs an FTA TRN Check.
FTA TRN Verification ensures compliance with the provisions of UAE VAT Laws and saves one from the potential loss of input tax credit. Also, check 11 things to know about VAT in UAE to have a complete understanding of VAT Compliance requirements in UAE.
TRN Verification Steps
Carry out a TRN Check
Earlier, only the businesses registered on the FTA portal could perform the TRN Verification, but now even the general public can also perform the TRN Verification in UAE.
- One needs to visit https://eservices.tax.gov.ae/en-us/trn-verify
- Enter the TRN of the supplier in the space provided
- Enter the Security Code as displayed on the screen in the space provided
- Hit the ‘Validate’ button
- The portal displays the Legal Name of the Entity in English as well as Arabic if it’s a valid TRN
VAT Verification in UAE
FAQs on TRN Verification in UAE
The word TRN stands for Tax Registration Number. The Federal Tax Authority issues TRN to a VAT registered business. TRN Number is a 15-digit unique number assigned to a business on VAT Registration. Tax Invoices, Tax Credit Notes, VAT Returns, etc., should always carry a TRN Number.
The Federal Tax Authority (FTA) maintains the https://eservices.tax.gov.ae/ portal. The portal facilitates VAT Registration in UAE. Having said that, you need to create an e-service account and complete the registration form. Upon successful completion of the registration process, the user receives a TRN as per the UAE VAT Laws. Please check VAT Registration in UAE for a detailed explanation of Tax Registration and obtaining a TRN.
1. In order to check TRN, you need to visit https://tax.gov.ae/ and scroll down until you see the following form:
2. Enter the TRN number of the supplier from the Tax Invoice
3. Enter the CAPTCHA code displayed on the screen and hit the button
4. The portal will come up with a pop-up displaying the Supplier Name
5. Compare the Supplier Name with the one on the Invoice and you are done with your TRN Verification
TRN Number is a 15-digit number issued by the Federal Tax Authority, UAE.
The FTA issues a 15-digit unique TRN / VAT Registration Number to its registrants. If your supplier has quoted a 16-digit TRN, then there is some mistake. You should ask your supplier to make changes in the invoice and mention the correct TRN. You may perform TRN Check on https://eservices.tax.gov.ae/en-us/trn-verify and satisfy yourself as to its validity.
Yes, linking the TRN with Dubai customs allows a taxable person to clear the imported goods without paying VAT at the customs. Additionally, he can pay for VAT at the time of filing his VAT Return.
There are three options available to a taxable person to link the TRN with customs:
a. One can update the Customs Registration Number on the FTA portal
b. One can file the Import Declaration Form
c. One can update TRN through the customs department
Yes, as per the UAE VAT Laws, a taxable person must mention his Tax Registration Number in the VAT returns that he files with the FTA.
If TAN Verification is not performed while paying for an invoice, then the input tax paid can go to the wrong hands, and you may not get an Input Tax Credit for the purchases made. Hence, it is always advisable to do VAT Verification.
The Federal Tax Authority has begun a new service for issuing a Tax Clearance Certificate. It issues Tax Clearance Certificates to tax registrants with valid TRN Numbers. One needs to log in to the FTA Portal in order to apply for a tax clearance certificate. Additionally, businesses with a valid TRN number can use the Tax Clearance Certificate for the following purposes:
– Change Ownership
– Business Closing
– Below Voluntary Threshold
– Below Mandatory Threshold
VAT Consulting Services
N R Doshi & Partners has a team of skilled VAT Consultants in Dubai that handle VAT-related issues/ queries of the clients while ensuring compliance with UAE VAT Laws. We advise you on the procedural aspects of VAT. Through careful evaluation of your taxable supplies, we inform you if you cross the minimum threshold that requires VAT registration.
You may also use our VAT Calculator to arrive at your VAT obligations as per the VAT Laws in UAE. Our VAT Consultants in UAE assist you in obtaining Tax Registration Number / TRN as per the VAT Laws in UAE. We also help you in Tax return filing, and allied VAT Consulting services such as VAT Implementation and VAT advisory all across the UAE.
Check out How to obtain a tax residency certificate and commercial activities certificate in the UAE to know step-by-step procedures to obtain a tax residency certificate and commercial activities certificate. Besides our VAT consulting services, as one of the reputed audit firms in UAE, we also provide external audit services, internal audit services, and advisory services in Dubai, UAE.