The VAT is the latest addition to the taxes in the UAE. It has been implemented from 1st January 2018. In the present state, it is of paramount importance that a company is registered for VAT in UAE so that it can charge VAT to customers.
After the registration process is complete, the registrant will receive a TRN number. This number will only be available after the VAT registration process is completed. It is an unsaid rule that all companies in the UAE must have a TRN number. Let’s dig more in-depth as to what is a TRN and how can we receive it.
What is a Tax Registration Number (TRN)?
Tax Registration Number or TRN is an exclusive number that has been issued to the entity that has been registered for VAT in UAE by the Federal Tax Authority, UAE (FTA). It is a 15-digit number through which the Federal Tax Authority will be able to differentiate you from the others. The entity to whom the tax number is issued is called a “Registrant”, who should always mention this number in the various documents that have been set by the government such as VAT returns, Tax Invoice, Tax Credit Note, etc.
This number will be automatically issued to you after you register for VAT in Dubai. It is essential for you to mention the TRN as it will allow the government to keep track of all the transactions which have been made by a business or an individual. Only the traders or companies which have received their TRN certificate are allowed to charge VAT to the customers.
Procedure to Apply for TRN
The process of getting registered for Value Added Tax and getting Tax Registration Number are the same as TRN is issued by the Federal Tax Authority when an entity registers for VAT. To register for VAT online, you need to follow specific simple steps:
Login to your E-Services Account
The process of registering for VAT has been made an online process as it is much easier for both the registering entities and the UAE government. First, you need to create an account on the online portal of the FTA. For the creation of an account, it would be required of you to furnish some details such as email id and password after which you will be receiving your login credentials.
Click on Register for VAT
After logging in to your account, there would be a clickable button named register for VAT present on the screen. You need to click on this button which will bring forth a VAT getting started guide. This guide will help you understand the features of VAT in UAE. After reading the complete guide, you need to tick “'Click here to confirm you have read the getting started guide” and click on “Proceed”.
Fill out the necessary details in the VAT Registration Form
After clicking on “Proceed”, a registration form will open in front of you. This form consists of eight different sections in which you need to fill the necessary details. Once all the necessary details are filled in one page, the portal will allow you to move to the next page. Track of the registration process can be kept easily as the pages that have been completed will be marked by a green tick mark. After filling all the pages, you need to click on “Submit for Approval”.
This would send the completed registration form to the FTA which will scrutinize the form and will send you a mail of approval. After the approval, the entity is registered for VAT in UAE and receives a TRN and VAT registration certificate stating the number. This number would be used to identify you and your business among the various businesses.
Let’s have a look at the documents that you should keep prepared to make the registration process easy.
Documents to be Prepared
To register for VAT, there are some of documents that are needed to be scanned and uploaded to the FTA. The process for registration is an online process, and there is no need for any physical presence or any physical presentation of a document. Below is a list of the most common documents that need to be kept prepared during the registration.
- Registered Email ID
- If the applicant is a company, copies of legal documents such as trade license, share certificates, Memorandum and Articles of Association etc.
- Passport copy and Emirates ID of owners/shareholders
- Copy of power of attorney, passport and Emirates ID of the manager/authorized person as well as the mobile number.
- Turnover declaration letter containing sales figures from 2017 as per FTA format
- Supporting documents for the revenue
- Projected Future Revenues with supporting documents like confirmed purchase order.
- Details of Bank Account including IBAN number
- Registered address of the company ( Building name, office No, Street, P.O Box and Phone number)
- Customs Details will be required only if the Company deals in such kind of business.
These documents are required for the registration for VAT. The number of documents may vary concerning the nature of the business.
With the recent amendments in the law, registering for Vat in UAE is extremely important for a company as without registration they will not be allowed to collect VAT from the customers. It should also be taken into consideration that even the slightest mistake in filling out the registration form will lead to the dismissal of the form, and the company will have to start over again. So instead of doing the process themselves, a company should hire the services of a firm which would help you in getting registered for VAT.
In case you are looking for such financial firm then JAXA auditors can help you. Apart from helping you in the VAT registration, we also provide you with a range of services such as Audit and Assurance services, Tax Service, etc. To know more about the various services offered to us, do contact us - we would be glad to help.