TRN is a number that is assigned to all agencies within the UAE.  It is unique to every business and is issued by the Federal Tax Authority(FTA). It is a mandate for a business to pay taxes and to work with the authorities.  It is not legal to acquire VAT from your customers without a valid TRN. 

TRN is a must if you are dealing with the government and the regulatory authorities in the UAE. It is also an identification of your business. There are a few purposes for which you are needed to present your TRN-

• Prepare a tax receipt
• tax credit
• Filing of tax returns and VAT
• Invoicing to clients where VAT is applicable

The UAE allows businesses to take  5% VAT from the customers. However, many companies add 5% VAT without a valid registration number and thus the tax collected does not reach the government. Such frauds are essentially harmful to the enterprise. To avoid this, a simple TRN verification system has been put in place to ensure that customers can easily know whether they are paying taxes to the right business or to a fraud. 

It is essential to note that without a TRN, you cannot legally charge VAT from the buyer. Incase VAT is collected by any means other than the legal one, it can lead to termination of business licence, fines and various other troubles for the owner as well as the business. 

With the ever changing world and immense technological advancements, everyone who is proficient with the use of a device that has internet access can access the TRN verification system. FTA registers the valid businesses with a TRN on their systems. It is therefore possible to look up the TRN of the business and ensure that they are not committing a fraud.

The TRN is a unique number that follows a specific format. This allows the buyer to identify whether the number is authentic or not. It can be checked to ensure that the number is a correct one. How to recognise the correct TRN?-

• First three digits are 100
• The first three digits are accompanied by 3 units of 4 digit numbers
• The format is therefore- 100-XXXX-XXXX-XXXX.

Any of the following can be signs and identifiers of a fraudulent TRN:

• They don’t have exactly 15 digits
• The first 3 digits are not 100
• Have a different form

Once you have primarily checked its authenticity visually, the TRN can now be checked for authenticity online.

It is important to know how to access the TRN verification page. It is an easy process that proceeds as follows:

Visit the FTA website online through the URL or by simply searching through google.

The next step is to enter the concerned TRN and enter the captcha displayed on the screen correctly. After this, press the ‘Verify’ button.

Once you click the verify button, the database is checked for the number entered. If it has been registered, “TRN is available in the system” shows on the system along with the company name in English and Arabic. In case it isn’t present in the records, “TRN does not exist in the system” is displayed.

This ensures that the business you are buying from is legally registered for tax collection purposes.

Filing a TRN fraud after recognising it is essential. Collecting VAT without a TRN is a fraud. It is essential to report such cases. This is important to stop injustices towards the customers.If you find a fraudulent TRN, report it to the FTA. This can be done by calling or emailing them. 

If your business does not have a TRN, here are the steps you can take to get registered. This can be done through the FTA eServices website by following simple steps.

Open your FTA account through the eservices website. The list of the required documents will be provided to you when you are registering. You must also provide the essential information about your business such as the type of business, where the business is located in the United Arab Emirates and information about the business owner. When applying for a tax identification number, you should submit scanned copies of the Partnership Agreement (for partner companies), Passport or Emirates ID and Other records relating to the ownership of the company

It may also be necessary for you to submit the company bank account number and information of a manager in case you are not the one who runs the business.

The UAE has been working tirelessly towards the growth of the country from an oil-based economy to a business-friendly economy which is regarded as the business and investment hub. To support this, TRN verification system has been introduced for customers to gain clarity.

With the many growth opportunities in the UAE, expats now have even more reasons to setup here. You can contact a business setup consultant such as Projectfrpjsc to get started with your company setup in the UAE. We can help you with your VAT registration, tax advice and complete business setup advice. Contact us today.