Tax Registration Number UAE – TRN Verification & VAT Number Check UAE

What is the Tax Registration Number (TRN) UAE

In addition to being against the law, wrong TRN usage harms the business community. You must learn about TRN to protect your company from suppliers who might defraud you by using phony TRNs. This will help you conduct business in the UAE ethically and securely. Therefore, in order to safely claim the value-added tax paid on purchases, VAT verification becomes crucial. This article will help you in understanding the procedure of verifying the Tax Registration Numbers (TRN) UAE and how VAT registration service in UAE can help you in operating safely in the tax environment.

The Federal Tax Authority TRN is a distinct 15-digit code. A distinct TRN number is given to each company or individual that is registered under UAE VAT. Additionally, only businesses registered under UAE VAT are able to charge VAT to clients. In the event that you are not a “registrant,” charging VAT may affect you legally. The categories of VAT supply determine how VAT is handled in commercial transactions. Customers of registrants must pay 5% VAT on taxable supplies, which include taxable goods and services.

The company’s status as a registered firm is guaranteed by the tax registration number. Businesses are also given the chance to request input tax credits. Customers can use the TRN number to verify if the company is authorized to charge VAT on supply. The TRN, together with the company’s name and address, must appear on every invoice, bill, or receipt that the merchant creates in order to complete a transaction.

TRN Number Format in UAE

The Federal Tax Authority (FTA) issues a 15-digit unique number named UAE Tax Registration Number (TRN) to all businesses registered with the authority to pay VAT in the UAE.

Example of TRN: 100123456700003

Every TRN is business specific and is applied in:

1. VAT invoices
2. VAT return filing
3. VAT payments
4. VAT refunds
5. Tax compliance records

The TRN should be displayed on any tax invoices made by a UAE-registered business under the VAT.

FTA TRN Verification Portal Link

Businesses and individuals can verify a UAE Tax Registration Number through the official Federal Tax Authority portal.

The official TRN verification tool allows users to check whether a company is registered for VAT in the UAE and legally allowed to charge VAT.

Through the TRN verification portal, you can:

• Verify VAT registration status
• Confirm company name linked to TRN
• Ensure supplier TRN is valid
• Avoid VAT fraud
• Confirm VAT before claiming input tax

Businesses should always verify TRN before processing supplier invoices or claiming input VAT.

How to Check Validity of Tax Registration Number

TRN Verification UAE: How to Verify a TRN

Following are the steps to be followed for TRN verification:

• Log in to the website by entering your credentials. If not have an account, you have to create one by registering.
• On the top menu, find the option “TRN Verification”.
• Enter the tax registration number you want to verify.
• After entering the captcha, click the validate button only once.
• You will get a warning, “Tax registration number does not exist in the system,” in case the TRN number is wrong. If not, the name and VAT number of that particular company will be shown in Arabic and English.

In UAE VAT returns filing, this tax registration number validation becomes an important step as an invalid TRN voids the transaction.

This is a tool that anyone can use to ensure they are only paying taxes to UAE-registered businesses and only on chargeable provisions. This tool can be used by both registered and unregistered individuals.

In the UAE, a number of companies have fake tax registration numbers. Hence, in order to escape from paying the unethical VAT, make sure to verify and check the TRN (VAT verification) mentioned on the invoice or bill. As a consumer, be sure to check the TRN number on each bill to verify the VAT specified.

Information that comes after TRN Verification

After typing a valid TRN into the verification system, the following information will be displayed:

• Company Name (English)
• Company Name (Arabic)
• Tax Registration Number (TRN)
• VAT Registration Status
• Reaffirmation that the TRN is valid.

In case of invalidity of the TRN, the system will show an invalid TRN or the non-existence of the TRN.

Before paying business, always ensure that there is a match between the company name indicated in the TRN verification portal and the name of the company on the invoice.

In UAE, common TRN Verification errors

In certain cases, the TRN verification can go wrong because of several reasons. The most widespread TRN verifying mistakes are:

• Incorrect TRN entered
• Error in typing TRN numbers.
• TRN and Company recently registered.
• Registration of VAT is cancelled or suspended.
• TRN is a member of another company.
• System verification delay

In case of failure of TRN verification, the businesses must verify the TRN with the supplier and reverify it via the official portal before processing invoices or VAT claim.

Under Which Circumstances Do Businesses Check a TRN in UAE

TRN verification is to be undertaken on a regular basis in the process of VAT compliance and accounting.

Businesses are required to check TRN when the following arise:

• Prior to settlement of supplier invoices.
• Prior to claiming input VAT.
• During the process of recruiting new suppliers.
• Prior to signing contracts with new companies.
• Prior to payment of VAT returns.
• When preparing audit reports on VAT.
• Upon the receipt of high invoices.
• In case of new suppliers.
• In financial audit and compliance inspections.

Periodic checking of TRNs enables companies to evade VAT fines and fraud.

Fine of Fake TRN in UAE

Fraudulent or invalid use of TRN in UAE is against UAE VAT law and can attract repercussions on the part of federal tax authority.

The effects of invalid use of TRN could include:

• Administrative penalties
• VAT fines
• Denial of input VAT claims.
• Federal Tax Authority VAT audit.
• Legal penalties
• Serious cases: suspension of VAT registration.
• Penalties on wrong VAT reporting.

Before a business makes an invoice, pays or claims VAT input tax the TRN numbers should be verified.

UAE TRN VAT Number Difference

The TRN (Tax Registration Number) and VAT number are equal in the UAE. TRN is the abbreviation used to refer to the number that is given to businesses registered under VAT by the Federal Tax Authority.

The TRN is applied to:

• VAT invoices
• VAT return filing
• VAT payments
• VAT refunds
• Communication with FTA
• VAT compliance records

When an individual mentions a VAT number in the UAE he or she is mentioning TRN (Tax Registration Number).