TRN Verification in UAE: Steps to Verify VAT Number in UAE

Tax Registration Number (TRN) is a unique 15-digit identification code assigned to all VAT-registered businesses in the United Arab Emirates (UAE). To verify a TRN in UAE, go to the FTA's official TRN verification tool, enter the TRN in the mentioned field, and click "Submit" to check whether it is valid or invalid. This VAT TRN verification practice helps you to avoid dealing with businesses non-compliant with UAE VAT regulations. This article explains what is TRN (Tax registration number), its importance and steps to verify TRN in UAE. 

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What is TRN in UAE?

As mentioned, the Tax Registration Number (TRN) in UAE is a unique 15-digit identifier issued by the Federal Tax Authority to each VAT-registered entity for fulfilling tax obligations and complying with UAE VAT laws. It is assigned after the VAT registration of a company running in Dubai. It separates the registered businesses from unregistered ones. One of the major implications of tax registration numbers is it helps to identify companies that do not comply with VAT rules and regulations. 

Why is TRN verification important?

VAT TRN verification is important for several reasons, especially in the UAE, where VAT rules and regulations must be followed:

• Prevents VAT Fraud: Businesses can charge VAT without being registered, keeping the collected tax instead of remitting it to the government. Verifying a TRN ensures you're dealing with a legitimate VAT-registered business that is authorized to collect VAT.
• Ensures Compliance: By verifying a TRN, you can be confident that the business you're dealing with is meeting its VAT obligations. This protects you from any potential penalties or legal issues arising from associating with a non-compliant entity.
• Accurate Tax Records: When you verify a TRN, you can be sure the VAT information you receive (VAT invoices, receipts) is accurate. This allows you to maintain proper tax records and claim any input tax credits you may be entitled to.
• Mandatory TRN inclusion on tax documents: Businesses are mandated to include TRN on all tax-related documents, including tax invoices, VAT returns, Credit notes, and other documents mentioned under UAE VAT law. 
• Smooth Business Transactions: Verifying a TRN helps avoid delays or complications in business transactions. If you're unsure of a business's VAT registration status, you might hold back on transactions until you can verify.

Step-by-Step Process to Verify TRN in UAE

The Federal Tax Authority (FTA) offers a free online tool to verify Tax Registration Numbers (TRNs). This helps ensure you're dealing with a legitimate business registered for VAT (Value Added Tax). 

To Verify TRN in UAE, use the following steps,

Step 1: Access the TRN Verification Tool

Visit the FTA website and click on the "TRN" icon located on the right-side panel.

Step 2: Enter the TRN and Captcha

• Enter the complete TRN number you want to verify in the "TRN " field.
• You'll also see a Captcha code displayed. Enter the characters exactly as shown in the image.

Step 3: Verify the TRN

• Click the "Submit" button.
• If the TRN is valid, the system will display details about the registered business, such as the business name. You can then compare this information with your records to confirm its legitimacy.
• If the TRN is invalid, you won't receive any details. This indicates the TRN is not registered with the FTA.

Conclusion

In conclusion, verifying a Tax Registration Number (TRN) in the UAE is a quick and easy process that safeguards businesses from fraud and ensures compliance with VAT regulations. It ensures that the business has completed its part of VAT registration UAE. The Federal Tax Authority provides a free online tool that can confirm a business's legitimacy and maintain accurate tax records for smooth transactions.

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FAQs

1. What is a Tax Registration Number (TRN) in UAE?

A TRN is a unique 15-digit identification number assigned to VAT-registered businesses in the UAE by the Federal Tax Authority (FTA) for tax compliance purposes.

2. Why is TRN verification important in the UAE?

TRN verification ensures you are dealing with a legitimate VAT-registered business, preventing VAT fraud, ensuring compliance, and helping maintain accurate tax records.

3. How can I verify a TRN in UAE?

To verify a TRN, visit the FTA’s official website, enter the TRN in the verification tool, and click "Submit." If the TRN is valid, the business details will be displayed.

4. Do I need to include the VAT Registration Number in my VAT returns to the FTA?

Yes, under UAE VAT regulations, businesses must include their TRN when filing VAT returns to the FTA to ensure proper tax reporting.

5. What are the consequences of not verifying the TRN when paying an invoice?

If you don't verify the TRN, you may end up paying input tax to an unregistered business and may not be able to claim the Input Tax Credit (ITC). It’s always best to verify the TRN before making payments.

6. What happens if the TRN is invalid?

If the TRN is invalid, no business details will be displayed, indicating that the business is not registered with the FTA for VAT.

7. Can I verify any TRN number online?

Yes, you can verify any VAT-registered business's TRN using the free online verification tool provided by the Federal Tax Authority.

8. What details will be displayed after verifying a TRN?

If the TRN is valid, the system will show details such as the registered business name, which you can compare with your records.

9. Is the TRN verification process free?

Yes, the TRN verification process is free and can be done online through the FTA’s official website.

10. How does TRN verification protect my business?

By verifying the TRN, you ensure that you are only engaging with VAT-compliant businesses, avoiding penalties or legal issues associated with non-compliant entities.