TRN Verification: How to verify UAE Tax Registration Number?

The taxation landscape in the United Arab Emirates (UAE) has evolved significantly in the last few years. With the introduction of the Value Added Tax (VAT) in 2018, businesses operating in the UAE are required to have a unique identifier known as the Tax Registration Number (TRN). This article provides an in-depth guide on TRN and the process of TRN verification in UAE.

What is a TRN in the UAE? 

The government of the UAE introduced a Value Added Tax (VAT) in 2018. The 5% tax on goods and services is part of a broader effort to raise government revenue and reduce the country’s reliance on the oil sector. 

A Tax Registration Number (TRN) is a unique identifier issued by the Federal Tax Authority (FTA) to each VAT-registered business or individual in the UAE. The TRN is a unique 15-digit number that serves as a means of identification for various corporate entities, enabling the FTA to track and monitor taxable transactions efficiently.

Why is the TRN important? 

The introduction of the TRN has brought about significant changes in the business environment in the UAE. Here is a look at why the TRN matters to businesses operating in the UAE:

1. Legal Compliance

VAT-registered businesses are legally required to display their TRN on all official documents, invoices, and correspondence related to taxable transactions. Failure to provide a valid TRN can result in penalties and fines imposed by the FTA.

2. Input Tax Recovery

Businesses can claim input tax credits on purchases only if they have a valid TRN. Verifying suppliers’ TRN guarantees that a business is dealing with legitimate vendors and can recover input tax in compliance with VAT regulations.

3. Business Transparency and Accountability

The TRN fosters transparency in business transactions and aids in preventing tax evasion and fraud. Verifying TRNs ensures that companies are dealing with reliable and compliant entities.

4. Business Reputation

Displaying a valid TRN helps build trust and credibility in business dealings. Customers and partners are more likely to engage with companies that are registered for VAT and have a valid TRN.

How to Verify the TRN in the UAE?

Verifying a TRN in the UAE is a fully online process on the FTA's official portal. Here is a step-by-step guide on how to verify a TRN:

Step 1: Access the FTA Website Portal

Visit the official website of the Federal Tax Authority: https://tax.gov.ae/en/default.aspx and click the ‘TRN’ Icon on the right-side panel.

Step 2: Enter the TRN

You will be prompted to enter the 15-digit TRN you wish to verify. Ensure you input the TRN correctly to avoid errors in the verification process.

Step 3: Submit the Verification Request

After entering the TRN, click on the "Verify" or "Submit" button to initiate the verification process. The system will validate the TRN against the FTA's database to confirm its authenticity.

The Role of Tax Agents in TRN Registration and Verification

Tax agents in the UAE play a crucial role in ensuring efficient results in line with business-specific needs. They can help businesses secure the TRN promptly and effectively verify the TRN, assuring that the business charging VAT and the business paying VAT both have a valid TRN.

You can find UAE’s top tax agents at cost-effective prices through Commenda: 

Book a free TRN registration call today→

TRN Verification in Dubai: Why It Matters

Given the potential for VAT-related fraud in the UAE, TRN verification has become essential. Verifying a TRN ensures that the person or business charging VAT is a registered entity with a legitimate TRN. By doing so, businesses and consumers can avoid fraudulent activities, such as tax evasion and illegal transactions, thereby ensuring compliance with VAT regulations.

Conclusion: UAE TRN verification

Whether you're a business owner verifying the credentials of a potential partner or supplier, or a consumer seeking confirmation on the details of a company, TRN verification is an indispensable part of conducting business in the UAE. With a deep understanding of VAT laws and regulations, having the right guidance can help businesses ensure they are compliant, fostering trust in business relationships. Remember, when it comes to TRN verification in Dubai, it's always better to be safe than sorry.