All you need to know about the Tax Registration Number (TRN)

Jan 2021

In the UAE, a person whose turnover exceeds AED 3, 75, 000 should voluntarily register himself or herself with the Federal Tax Authority of UAE, and a person whose turnover exceeds 1,87,500 is allowed for voluntary registration. The tax registration number is also known as the Tax Identity number as the person registered with it is only eligible as a taxpayer. You can only fulfill your VAT registration process if you have a TRN number with you.

Inference about Tax Registration Number (TRN)

The tax registration number is the VAT registration number through which the federal authority will recognize you as a tax bearer. The VAT is nothing but the tax levied on the transaction of several goods and services that are not exempted by law. 'Registrant' is the word used for a taxable person who has a VAT registration number for him. TRN is necessary so that the government can have a track record of your taxes and business transactions. Several different numbers can be used for tax identification purposes, and there are different IDs provided by the government for different purposes and activities. If you are having a plan of adding VAT to your goods, you must get yourself enrolled with the government for VAT, and this number will be automatically issued to you after you register for VAT in Dubai. If you are thinking about how to apply for a tax registration number in the UAE, an accounting firm like JAXA will be an excellent choice to look upon.

Types of Tax Identification Number

There are five types of tax identification number in UAE –

1) Social Security Numbers

The social security number is the most common form of tax identification number for personal identification and tax purposes. Social security number is used for filling the income tax returns of employees and used by parents to claim income tax as a dependent on behalf of their children. It is used for Social Security and Medicare facilities to the individual employee. Applications for free and fee-based application, both the options are available for new parents.

2) Employer Identification Number-

IRS to recognize corporations, trusts, and real estates that are taxpayers uses the employer identification number. Application for Employer Identification Number is free and can be obtained immediately after filling it for income tax purposes.

3) Individual Tax Identification Number

Individual Tax Identification Number by IRS provides certain non-resident aliens who do not qualify for SSN for tax returns benefit. The consort of non-resident aliens includes the number of tax returns on his shoulder when he files for it. In order to get an ITIN, the applicant must complete Form W-7 along with documents supporting his non-residential status.

4) Adoption Tax Identification Number

The ATIN only applies to domestic adoptions when the adoptive parents cannot obtain the child's SSN in time to complete their tax returns on time. A particular criterion is necessary like the adoption must be pending the child should be the citizen of UAE.

5) Preparer Tax Identification Number

From Jan 1, 2011, the listing of a PTIN on each tax return preparer file is made mandatory by IRS. Prior to this date, the use of the PTIN was optional. Any Preparer who wishes to complete all or part of a tax return or refund to another individual must have a PTIN number.

Requisites for Tax Registration Number-

These are the documents needed to submit for your company's VAT Registration -

  • In the case of companies, the incorporation certificate of the company is mandatory.
  • Along with the incorporation certificate, Memorandum of Associations and Articles of Association are also submitted.
  • Particulars of people involved in the firm.
  • Lease/Rental Agreement of Directors as address proof.
  • Company PAN Card in case of a company, in case of proprietorship individual PAN Card.
  • ID Proof of Director – Election card/passport/driving license.
  • Rental/Lease agreement of company/ proprietorship.
  • Partnership deed- in case of a partnership firm.
  • Passport size photograph of the Directors of the firm.

Procedure to Apply for TRN-

There is an effortless three-way procedure to get TRN. The procedures for online VAT registration are-

1) Creation of your E-services account

The first step is to create an account on the online portal of the FTA. The account creation is straightforward and easy, you only have to fill the required details like your email address, and password and your portal is created and ready for use.

2) Click on VAT registration

After you logged in to your account, the screen will show a register for VAT, and a clickable mouse icon will be there to proceed. Clicking this icon will bring forth a VAT starting guide. This guide will guide you to understand the concept of VAT in the UAE. After you have gone through the whole guide, you have to click the "Proceed" button, but before that, you have to tick the confirm button that I have gone through the guide and ready to proceed.

3) Filling the Necessary Details

After clicking on the proceed button, a form appears before you, which consists of eight different sections and requires the necessary details. Once you are done with the detail filling of the first page, you have to click on the Next button. This button will bring the second page then you have to proceed to the third page once you are done with detail filling on the second page. This will continue until the eighth page, and once you are done with all the sections, you need to click on the "Submit for Approval" button.

This will send your completed registration form to the Federal Trade Association (FTA) who then scrutinize the details and will send you a confirmation mail. After the approval, the entity is registered for VAT in UAE and will receive a TRN number.

The registration should be done in accordance with the latest amendments and laws and registration is necessary because only after registration, they are allowed to collect VAT from the customers. You are wondering how you will manage to fill that form correctly without any mistake, do not worry JAXA auditors are there to help you professionally. They will not only help you in VAT registration but will also help you in other services like accounting, bookkeeping, etc. Contact us for rendering other beneficial services.