Check Company's VAT Registration Number in UAE

Businesses in the UAE must comply with the regulations set by the Federal Tax Authority (FTA), especially concerning Value Added Tax (VAT). Each VAT-registered supplier is provided with a unique VAT registration number. If your business is also VAT-registered, it's crucial to check a company's VAT registration number to verify legitimacy and reclaim any VAT paid on purchases. This guide will help you understand what a VAT registration number is, why it's essential, where to find it, and how to check a company's VAT registration number effectively through the Federal Tax Authority (FTA) portal.

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What is a VAT Registration Number?

A VAT registration number is a unique identifier assigned to businesses that register for VAT with the Federal Tax Authority. This number is proof that a business is authorized to collect VAT on behalf of the government.

In the UAE, a VAT registration number is a unique 15-digit numeric identifier. This identifier must appear on invoices and official documents. Businesses interacting with suppliers must check the company's VAT registration number to ensure it is valid before reclaiming any VAT.

Read our blog to learn more about the VAT Registration Numbers.

Why is it Important to Check a Company's VAT Registration Number?

Ensuring that a supplier's VAT number is valid is essential for the following reasons:

• Compliance with UAE Regulations: Businesses with an annual turnover above AED 375,000 must register for VAT. To claim VAT paid on purchases, you must check a company's VAT registration number to verify their registration status.
• VAT Reclamation: A VAT-registered business can reclaim VAT paid on purchases from other VAT-registered suppliers. However, the supplier's valid VAT registration number must be listed on the invoice for a successful VAT reclaim.
• Avoiding FTA Penalties: If VAT is reclaimed using an invalid VAT number, the FTA may reject the claim and impose penalties. Regularly checking a company's VAT registration number ensures compliance and prevents fines.
• Fraud Prevention: Verifying VAT numbers helps identify legitimate businesses and avoid potential scams. If a company provides an invalid VAT registration number, it may indicate fraudulent activity.

Where to Find the VAT Registration Number

When dealing with VAT-registered suppliers, the VAT number is usually listed on transactional documents. Here is where you can look:

• Supplier Invoices: Invoices issued by VAT-registered businesses must display the VAT number. Make it a practice to check the company's VAT registration number on every invoice before making any claims.
• Official Receipts: Retailers and service providers in the UAE typically include their VAT registration number on customer receipts, especially when VAT is charged.
• Supplier's Website or Stationery: Some businesses display their VAT number on their websites or business documents, such as brochures and business cards.
• Contact the Supplier Directly: If you canâ??t find the VAT number, contact the supplier and request it. Once obtained, make sure to check the companyâ??s VAT registration number to ensure it is valid.

Step-by-Step Process to Check a Company's VAT Registration Number (TRN Verification) in UAE

The Federal Tax Authority (FTA) provides an easy-to-use online tool to verify Tax Registration Numbers (TRNs). This process ensures that you are dealing with a VAT-registered business and helps you stay compliant with UAE VAT regulations.

Follow these simple steps to check a company's VAT registration number:

Step 1: Access the TRN Verification Tool

Visit the FTA website. On the homepage, locate the TRN Verification Tool by clicking the "TRN" icon on the right-side panel.

Step 2: Enter the VAT number and Captcha Code

In the TRN field, enter the complete VAT Number of the business you want to verify.

You will see a Captcha code displayed. Type the characters exactly as shown in the image to proceed.

Step 3: Submit the VAT number for Verification

Click the "Submit" button to check the TRN.

Review the Verification Results

If the VAT Number is valid, the system will display details about the registered business, such as its name and registration status. You can compare this information with your records to confirm the business's authenticity.

If the VAT Number is invalid, no information will appear. This indicates that the TRN is not registered with the FTA, and you may need to contact the supplier for clarification or report the issue to the FTA.

What to Do If You Encounter Issues with VAT Verification

If the VAT registration number provided by the supplier is not valid or cannot be found in the FTA portal, follow these steps:

• Contact the Supplier for Clarification: Confirm the VAT number with the supplier to ensure there are no errors in the information provided.
• Request a Corrected Invoice: If the VAT number on the invoice is incorrect, ask for a new invoice with the correct VAT registration number. You need this to check the company's VAT registration number and reclaim VAT.
• Report to the FTA: If a supplier charges VAT without a valid registration number, report the incident to the FTA. Fraudulent VAT collection is a serious offense.
• Retain Documentation: Keep copies of all correspondence and invoices. These documents are essential if you need to justify VAT claims or face an FTA audit.

By regularly performing TRN verification for your suppliers, you can ensure compliance with UAE VAT regulations, reclaim VAT without issues, and protect your business from potential fraud.

Procedure to Determine if Your Business Requires VAT Registration

If your business operates in the UAE, determine whether VAT registration is necessary by following these steps:

• Evaluate Annual Turnover: Businesses with taxable supplies exceeding AED 375,000 must register for VAT. If your turnover is below this threshold but above AED 187,500, you can opt for voluntary registration.
• Submit VAT Registration Application: Complete the VAT registration form on the FTA website and provide all required documentation, including trade licenses and financial statements.
• Obtain Your VAT Certificate: After successful registration, you will receive a VAT registration certificate containing your VAT number. Ensure this number appears on all invoices and receipts.
• Verify Supplier VAT Numbers Regularly: Make it a routine to check a company's VAT registration number before engaging with new suppliers.

Importance of Valid VAT Numbers in the UAE

• VAT Compliance: Ensuring that you only work with VAT-registered suppliers helps maintain compliance with FTA regulations.
• Seamless VAT Reclaims: A valid VAT number on your supplier's invoice is essential for reclaiming VAT. Always check the company's VAT registration number to ensure eligibility.
• FTA Audits: During an audit, the FTA may require you to provide valid VAT invoices. Having verified VAT numbers minimizes audit risks.
• Fraud Prevention: Regularly checking a company's VAT registration number protects your business from fraudulent practices.

Conclusion

Knowing how to check a company's VAT registration number is vital for businesses operating in the UAE. It ensures compliance with FTA regulations, helps reclaim VAT, and prevents fraud. Using the FTA's online tool, businesses can quickly verify VAT numbers and avoid potential issues with VAT claims.

By following the steps outlined in this guide, your business can efficiently manage VAT-related processes and safeguard itself from non-compliance. If you need assistance with VAT registration, filing, or compliance, Filings.ae offers expert services to support your business.

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