UAE imposed a value-added tax (VAT) in January 2018 for businesses with annual revenue above the designated threshold of AED 375,000. If the business turnover is above AED 187,500, you can voluntarily register for VAT. Every person who registers for VAT gets a unique registration number. It is called TRN or Tax Registration Number.
This article aims to clarify the confusion and answers queries on the TRN in the UAE.
FAQs on Tax Registration Number?
TRN is the number with the help of which the authorities recognize you as a VAT subject. The subject, who registers for VAT is called ‘registrant.’If your turnover exceeds the designated limit, you need to register your business for VAT. For VAT registration and compliance, you will need to seek professional services. If you are in the UAE, you can easily get in touch with the Best VAT consultancy in Dubai for risk-free compliance.
Some of the important queries regarding the VAT registration number are listed with their answers as follows:
1. How to get a VAT registration number?
When you register for your business on the federal agency’s website, it takes some time in approval and verification. Once your registration application is cm0omplete, and the verification is successful. The system generates a VAT number unique for you.
2. Who issues it?
The federal agency that deals with the VAT and related issues in the UAE is called the Federal Tax Authority. As you have to register for VAT on their website, it is the entity that issues you a TRN or a VAT number.
3. How many digits are there in TRN?
When you are registering for the VAT in the UAE, you are expected to get a 15 digit TRN or VAT number. The combination is unique for every registrant and thus enables the FTA to recognize each registrant and discern them from one another.
4. Who can use it?
The registrant who fills in the form is liable to pay the VAT and thus is the sole person who can use this number. If a taxable person has already registered himself with the federal taxation authority, then the person will already have a unique TRN, which he/she can use when registering for the VAT and joining a tax group.
5. Which document requires it?
Once you become VAT compliant in the UAE, it becomes mandatory for you to mention the VAT number in various documentations and transactions. The documents which absolutely require the VAT number to be mentioned include VAT returns filed at the end of the year, tax invoices over the year, and tax credit notes.
6. What are theBenefits of the VAT registration number?
Once the businesses in the UAE have registered for the VAT, they are allowed to do a number of things that other businesses cannot. These include charging VAT on all the taxable supplies and goods their business deals with.
Besides this, they can claim an input tax credit that they pay on their purchases. It gets deducted from the VAT amount they have to pay. Those businesses are also able to file VAT periodically instead of a one-off return for a year.
Looking forward to registering for VAT in the UAE?
The VAT in the UAE is regulation for businesses with a hefty annual turnover. If you are one of the business owners who want to reap the benefits of VAT registration and compliance, you must register for it soon.
For this, you will need the services of VAT experts. You can get in touch with the best VAT consultancy in Dubai to ensure that your business remains safe from the risk of penalties. The experts understand the intricacies and fundamentals of VAT, which you, as an ordinary man, cannot.
The experts will help your workplace operations get rid of misrepresentation. The records will be set in order with accuracy. The reporting structure will improve significantly. Thus VAT registration is only beneficial for your business and hiring experts serve as a cherry on the top.