What is a TRN?
A Taxpayer Registration Number (TRN) is a unique 15-digit identifier assigned to every business registered for Value Added Tax (VAT) in the United Arab Emirates (UAE). The Federal Tax Authority (FTA) issues TRNs, which serve to distinguish businesses for taxation purposes.
Why is TRN Verification Important?
Verifying a TRN is essential to confirm the legitimate VAT registration of a business and the authenticity of its TRN. This verification is critical in preventing VAT fraud, such as charging VAT without holding a valid TRN.
How to Verify a TRN in the UAE
There are two methods for verifying a TRN in the UAE:
- Online: To verify a TRN online, visit the FTA’s website and input the TRN number in the “TRN Verification” section. Click “Validate,” and the FTA will display the registered name and address of the business if the TRN is valid.
- By phone: You can also verify a TRN by calling the FTA’s customer support line at 800 82923. A FTA representative will request the TRN number and verify it for you.
When Should You Verify a TRN?
It is advisable to verify a TRN before engaging in any transactions with a VAT-charging company, including making purchases, entering into contracts, or receiving invoices. This practice ensures protection against VAT fraud and compliance with UAE tax laws.
Additional Tips for TRN Verification in the UAE
- Be cautious of counterfeit TRNs, as some businesses have used fake TRNs to levy VAT. In case you receive an invoice from a company with an unverifiable TRN, contact the FTA to confirm its validity.
- Regularly check the TRN’s validity since businesses can cancel their VAT registration at any time. A TRN that is valid today may not be so in the future, making it essential to verify it each time you engage with a company.
TRN Verification for Corporate Tax
Besides VAT, the UAE introduced a corporate tax system in 2023. Corporate tax is applicable to businesses with an annual taxable turnover of AED 375,000 or more. Companies registered for VAT are automatically registered for corporate tax. TRN verification is equally important for corporate tax purposes, as businesses liable for corporate tax must file an annual return with the FTA, including their TRN.
Conclusion
TRN verification plays a vital role in conducting business in the UAE. It helps in preventing VAT fraud and ensures compliance with UAE tax regulations.
Additional Frequently Asked Questions about TRN Verification in the UAE:
Q: What should I do if I cannot verify a TRN?
A: If you cannot verify a TRN, contact the FTA for assistance. They can help you verify the TRN or investigate the business further.
Q: What are the penalties for failing to verify a TRN?
A: Businesses failing to verify a TRN may face penalties. The FTA may also impose penalties on businesses conducting transactions with companies lacking a valid TRN.
Q: How can I verify a TRN for a non-resident business?
A: Non-resident businesses liable for VAT in the UAE must register for a TRN. You can verify the TRN of a non-resident business by following the same steps as outlined above.
Q: For any other questions about TRN verification, what should I do?
A: Contact the FTA, which has a dedicated team of customer support representatives ready to assist with any inquiries you may have.