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How to Apply for Tax Registration Number (TRN) in UAE?

  • By raes
  • October 15, 2024
How to Apply for Tax Registration Number (TRN) in UAE

If you’re planning to establish a business in Dubai or are already operating one, understanding VAT and the Tax Registration Number (TRN) system is essential. Many foreign entrepreneurs in the UAE are often confused by the VAT system and how to obtain a TRN. This guide simplifies the process, explaining how VAT works, how to apply for a TRN in Dubai, and the steps needed to ensure your business complies with UAE tax regulations. 

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

A Tax Registration Number (TRN) is a 15-digit number issued by the Federal Tax Authority (FTA) after successful VAT registration. The TRN allows businesses to be recognized for VAT purposes and helps track their tax-related activities. Each registered business must include its TRN on all issued invoices, making it easier for authorities to monitor transactions and ensure compliance with VAT laws. 

Who Needs a TRN in UAE? 

Every business in the UAE is required to comply with VAT regulations. To determine if your business needs to apply for VAT and get a TRN, consider the following revenue thresholds: 

Voluntary VAT Registration 

  • If your business’s taxable turnover exceeds AED 187,500 but is less than AED 375,000, you are eligible for voluntary VAT registration. 
  • Businesses with revenue below AED 187,500 do not need to register for VAT or obtain a TRN. 

Mandatory VAT Registration 

  • If your business’s taxable revenue exceeds AED 375,000 within the past 12 months or is expected to exceed that threshold in the next month, VAT registration is mandatory. You must apply for VAT and get a TRN number to avoid fines. 

How to Apply for TRN Number in Dubai? 

If you’re wondering how to apply for a TRN number in Dubai, the process is straightforward but requires careful attention to detail. Here’s how you can apply: 

Steps to Apply for TRN Number in UAE: 

  1. Visit the FTA Website – Go to the official Federal Tax Authority website. 
  2. Sign Up for an Account – Click on the “Sign Up” button and complete the sign-up form. You will receive a confirmation email. 
  3. Confirm Email & Log In – After confirming your email, log into the FTA e-services portal. 
  4. Register for VAT – In your dashboard, select “Register for VAT.” 
  5. Follow the Guide – Read and confirm the “Getting Started Guide” to proceed with the registration. 
  6. Complete the VAT Registration Form – Fill in the VAT registration form, which has 8 sections that include business details, financial information, and supporting documents. 
  7. Submit the Application – After reviewing your form, submit the application for approval. 

Once the FTA approves your application, they will issue your TRN, which you must use on all future business invoices. 

What Documents Are Required for TRN Application? 

To apply for a TRN number in UAE, you will need to provide the following documents: 

  • Memorandum of Association (MoA) 
  • Valid Trade License 
  • Company Bank Account Details 
  • Declaration of Company Turnover 
  • Emirates IDs and passport copies of shareholders and managers 
  • Last year’s income statement and bank details 
  • Sample invoices from suppliers and customers 

Having all these documents ready will make the application process smoother and faster. 

How to Apply TRN in Dubai: Frequently Asked Questions 
  1. How to Apply TRN Number in Dubai?

To apply for a TRN number in Dubai, visit the Federal Tax Authority (FTA) website, sign up for an account, and follow the VAT registration process outlined in this guide. Ensure you meet the revenue thresholds for mandatory or voluntary VAT registration. 

  1. How to Apply TRN in Dubai if My Revenue Is Below AED 187,500?

If your revenue is below AED 187,500, VAT registration is not mandatory, but you can opt for voluntary registration if your business is expected to grow. This can help your company establish a stronger presence and reputation. 

  1. How to Apply for TRN Number in UAE for a Foreign-Owned Business?

Foreign entrepreneurs operating in Dubai must follow the same procedure to apply for a TRN number. Ensure you provide the necessary business details, financial information, and legal documents. 

How to Verify a TRN Number in UAE? 

Once you have obtained your TRN number, you can verify it through the FTA’s online portal. This is important for ensuring that your business is properly registered and recognized by the tax authorities. To verify your TRN: 

  1. Visit the FTA website. 
  2. Enter the TRN in the designated space. 
  3. Complete the security verification and click “Validate.” 
  4. If the TRN is valid, the portal will display the legal name of the business. 

What Happens If You Don’t Apply for a TRN? 

Failing to register for VAT and obtain a TRN when your business meets the mandatory threshold can result in severe penalties and fines. It is crucial to apply for a TRN number in Dubai to avoid legal repercussions and maintain smooth business operations. 

Why Is a TRN Important for Businesses? 

The TRN is vital for businesses in the UAE as it allows them to comply with VAT laws, issue VAT-compliant invoices, and legally operate within the country. Having a TRN also enhances the credibility of your business, especially when dealing with other VAT-registered entities. 

 

If you’re still unsure about how to apply for a TRN number in UAE or need assistance with the process, Raes Associates is here to help. With extensive experience in business setup and compliance, Raes Associates can guide you through VAT registration, ensuring your business meets all legal requirements in the UAE. 

 

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