Businesses operating in the UAE must comply with the nation’s tax regulations under the VAT regime. A key part of this compliance is obtaining a Tax Registration Number (TRN).
What is a TRN in the UAE?
A TRN (Tax Registration Number) is a unique 15-digit number assigned to businesses upon registering for VAT in the UAE. Issued by the Federal Tax Authority (FTA), it identifies a business as a registered taxpayer under UAE tax laws.
Why is TRN important for businesses in the UAE?
TRN plays a vital role in streamlining tax processes and ensuring compliance. Here are a few key advantages:
Enables VAT Invoicing
A TRN allows businesses to issue VAT-compliant invoices to customers.
Supports Input VAT Claims
Only businesses with a TRN can claim VAT refunds on eligible purchases.
Builds Business Credibility
Being VAT-registered adds trustworthiness when dealing with clients or vendors.
Mandatory for Government Contracts
Most government and public contracts require the supplier to have a valid TRN.
Ensures Legal Compliance
Avoids penalties by meeting the UAE’s tax registration requirements.
Who needs to register for TRN in UAE?
TRN registration is required for most businesses whose taxable supplies cross the mandatory VAT threshold of AED 375,000 annually.
Mainland Companies
These businesses must register if they engage in taxable activities exceeding the threshold.
Free Zone Entities
Companies within designated free zones may also need TRN depending on their activities.
E-commerce Businesses
Online sellers must register if their revenues surpass the VAT threshold.
Freelancers and Consultants
If income from services exceeds the limit, VAT registration becomes mandatory.
How to apply for a TRN in the UAE?
Applying for a TRN is an online process via the FTA portal. Here’s how to do it:
- Create an FTA e-Services account on the FTA website.
- Log in and click on “Register for VAT.”
- Complete the registration form with details like business activity, income, and trade licence.
- Upload required documents and review your submission.
- Submit the application and await approval.
What Documents are required for TRN registration?
To register for a TRN, you’ll need:
- Trade licence copy
- Passport copies of owners/shareholders
- Emirates ID
- Memorandum of Association
- Bank account details
- Financial statements (if applicable)
How to verify a TRN in UAE?
To check if a TRN is valid:
- Visit the FTA TRN Verification Tool.
- Enter the 15-digit TRN.
- Click “Verify.”
You will receive details such as the registered company name and VAT status.
How long does it take to get a TRN in the UAE?
TRN approval typically takes 5–20 working days depending on document accuracy. There is no cost for TRN registration, but VAT filing, consultations, and legal support may incur fees.
What are the penalties for not registering or misusing TRN?
Businesses failing to register or misusing TRNs face strict fines:
- Failure to register: AED 10,000
- Failure to submit VAT returns: AED 1,000 (first time), AED 2,000 (repeat)
- Using an incorrect TRN: AED 5,000
How Our Big4 Experts Can Help With TRN & VAT Setup
Big4 simplifies the process with:
- Step-by-step VAT registration guidance
- Expert help with FTA documentation
- Free VAT eligibility assessment
- Fast-track TRN application support
- Compliance checks aligned with UAE tax laws
FAQs
What is the difference between TRN and ARN in GST?
ARN is the Application Reference Number in GST; TRN is the Tax Registration Number under UAE VAT law.
How do I check if my TRN is valid?
Use the FTA’s TRN verification tool online by entering the TRN.
Is TRN registration free in the UAE?
Yes, registering for TRN via the FTA portal is free of cost.
How do I know if I need to register for VAT and get a TRN?
If your annual taxable turnover exceeds AED 375,000, registration is mandatory.
Is TRN mandatory for freelancers or small businesses?
Yes, if their income crosses the mandatory VAT threshold.
Can I operate a business without TRN in UAE?
No, operating without a TRN after crossing the threshold is a legal offence.
How many digits is a tax registration number?
A TRN in the UAE consists of 15 digits.