UAE Federal Tax Authority’s Tax Compliance & Enforcement director, Sarah Al-Habshi, announced the launch of a new service, the verification of the 15-digit Tax Registration Number (TRN) of a VAT-registered business and authenticity of issued VAT invoices. The new service is part of the tax authority’s efforts in protecting consumers across the country from price manipulation and tax fraud attempts.
TRN verification in UAE is mandatory. Apart from adhering to guidelines on financial reporting and VAT return filing in UAE, all VAT-registered businesses in Dubai and the rest of the country are advised to validate all tax invoices and credit notes. This is necessary as a business that pays VAT without using the tax authority’s TRN verification service won’t be eligible in receiving an input tax credit from a fraudulent transaction.
How to Verify Tax Registration Number on Tax Invoices
Every invoice that comes from a VAT-registered business carries the VAT number or TRN. The service provider or merchant that collects VAT paid by customers will then pay it to the Federal Tax Authority after each tax period with VAT return filing in Dubai/UAE. But, with the country’s current standard rate for VAT which is at 5 percent, there are those who are tempted to pocketing the cash for themselves.
There have already been a number of cases wherein customers pay VAT unwittingly then some businesses don’t remit it to the tax authorities. Although perpetrators eventually end up behind bars, there are crooks who get away with the scam longer than they should.
So, as soon as you find the TRN on a tax invoice or tax credit note, it is important to check whether it’s authentic or fraudulent. To learn how to find TRN number of a company in UAE, follow this simple process:
Step 1: Go to the official website of the Federal Tax Authority or follow this link: https://eservices.tax.gov.ae/en-us/trn-verify
Step 2: You’ll be redirected onto the page for TRN verification UAE through the FTA portal. It will ask you to input the 15-digit TRN of an entity. You can find the TRN on the top portion of any VAT invoice in UAE. Enter the company TRN number, then click on the ‘Search’ button.
Step 3: Input the correct captcha code, then click on the ‘Search’ button again.
Step 4: You’ll be taken to the page with the registration details of the VAT-registered business. This is if the TRN is real and the business is eligible in charging VAT. However, if the TRN verification service says you should fill in the valid TRN, this means the VAT number you inputted is fake or fraudulent.
Step 5: After verifying the authenticity of a TRN, the next thing you should do is check whether or not the rates charged to you are accurate. What you want to avoid is being charged with the wrong amount or more than the correct VAT rate applicable.
The process of doing a TRN check with the FTA portal can be used with or without owning a VAT-registered business. Before processing VAT return filing in UAE, it is a must to validate each supplier’s tax registration number using the service. You can also use the same TRN verification service of the FTA if you want to know how to find TRN number by company name.
Take note: if you’ve validated a fake TRN, you are obliged to report it to the authorities. Call 600 599 994 or email at firstname.lastname@example.org.
Importance of the UAE Tax Registration Number
The Tax Registration Number of a business allows individuals and businesses to track all VAT-related transactions. In addition, the TRN improves communication between a buyer and a seller. The TRN is also essential for companies to claim the tax paid on acquisition of goods and services for business purposes. The following instances also highlight the significance of the TRN:
- The TRN offers unique identification for the registrant.
- With the TRN on all tax invoices of a registrant, the customers are more likely to pay the correct VAT amount.
- With the TRN, a VAT-registered business is able to claim all input VAT credits on eligible purchases and all other business expenses.
- In all communications with the tax authority, a registrant must provide the correct TRN.
- Businesses must include the TRN on all VAT-related documents, including tax invoices created by the seller, most especially when filing VAT returns in UAE.
Only a VAT-registered business can obtain a Tax Registration Number upon the completion of the process of VAT registration in UAE. The VAT number issued by the Federal tax Authority is a unique and crucial number that’s mandatory to include in all tax-related documents. If you need help on VAT registration, obtaining a TRN, VAT consultancy, and VAT refunds and filing in UAE, we can help!
At vat registration UAE, our team seasoned VAT experts in UAE are qualified in providing valuable tax advice, assess your eligibility for VAT registration, and accomplish your VAT registration or return filing on time. Call us to speak to our tax advisors and certified accountants today!
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