How to verify UAE Federal Tax authority’s TRN number

After implementing Vat in UAE nearly 260,000 firms registered with Federal Tax authority for VAT registration and firms started using TRN number to collect tax from the customers. Customers can verify the TRN number of the firm through Federal tax authority’s website. Validating the TRN on the Tax invoices received would simplify and ensure correct filing of VAT returns and settlement of payable tax within the time stipulated by FTA UAE.

Procedure to Verify TRN number:

• Visit Federal tax website link www.tax.gov.ae
• Look for tab Getting Help.
• While you hold pointer/mouse cursor on Getting Help Tab you would see TRN Verification link https://eservices.tax.gov.ae/en-us/trn-verify-verify and click
• Enter TRN number of you supplier/service provider as provided on tax invoice.
• Enter security code
• Click validate
• If TRN number provided by supplier/ service provider is correct it would provide the corresponding name in English and Arabic with the respective tax registration number in issued in UAE by the FTA (Federal Tax Authority).

 The Federal Tax Authority, FTA, has confirmed that businesses are not required to present a tax certificate in order to conduct their commercial activities and can simply use their Tax Registration Number, TRN. You can verify the TRN number issued by Federal Tax authority belongs to the concerned firm or not follow the steps

   

UAE's Federal Tax Authority confirm companies only need Tax Registration Number to carry out business

The Federal Tax Authority, FTA, has confirmed that businesses are not required to present a tax certificate in order to conduct their commercial activities and can simply use their Tax Registration Number, TRN.

In a statement issued on Saturday, the Authority called on all businesses and stakeholders in the UAE to carry out commercial or other transactions using TRNs provided by businesses, urging them not to require tax certificates in order to ensure smooth operations and minimise disruption of work.

The Authority stressed that tax registration certificate cannot be printed or downloaded using provisional Tax Registration Number. However, businesses that have acquired their TRN can conduct their business activities normally. The FTA website allows individuals to verify the TRN of any company registered with the FTA for Value Added Tax, VAT, purposes.

The Federal Tax Authority noted that businesses that submitted their registration applications after the deadline set by the Authority last December were given provisional TRNs to allow them to conduct business and comply with their tax obligations. These businesses, however, are required to complete their tax registration and provide the authority with all required documents and rectify any pending errors.

The provisional TRNs are sufficient for conducting business and verifying the legal status and compliance of taxable persons. They do not, however, allow for issuing the tax certificate, which becomes available once the final TRN has been issued. The Authority had issued these provisional TRNs to help businesses comply with tax regulations and to ensure operations are not disrupted.

Over 260,000 companies Registered with Federal Tax authority in UAE

About 260,000 companies have registered for VAT but tens of thousands of others are yet to do so - weeks after the deadline passed.

Khalid Al Bustani, head of the Federal Tax Authority, on Tuesday, urged businesses to get their affairs in order. But he suggested there would be leniency and said no date has been set for the issuing of fines.

Last week, the authority also said companies would be given a few months before they had to file their first tax returns to help ease the burden. Mr Al Bustani could not say exactly how many companies are yet to register, last year about 350,000 would be subject to VAT and had to register before December 4, 2017.

In addition to the 260,000, about 10,000 larger 'groups' of companies have also registered. Online registration for VAT began last September. "In some countries, it takes them up to eight months to register, but with the way things have been going, we believe we will be done soon," he said.

Mr Al Bustani said about 50,000 companies registered in one day last month as the deadline loomed.

When asked when the Dh20,000 fines would be issued, as set out in law, he said: "Our goal is not to fine companies, our goal now is to have everyone register. But whoever avoids registering intentionally will be subject to fines."

Mr Al Bustani said the authority was being flexible and understands that some companies were genuinely not ready yet, however, he said there will be no amnesty period for intentional dodgers and tax evaders.

"In all the other countries that apply VAT, the taxation authority only plays an observatory role, but here the private sector is expecting us to be-be a tax adviser," he said. "We have already done more than our role by providing awareness workshops, and explaining the procedures in detail on the website," he added.

 

Moreover, the authority is in the process of introducing tourist tax refund. The law already includes a clause with regards to tourist refund, however, the process will take time, he said.

The authority has been having discussions with the big four international firms that operate the tax refunding process, and they will be starting a tender soon to decide which firm will take care of the procedure in the UAE. The authority has also received 4,000 applications to register tax agents, out of which 250 have been rejected, he added.

David Daly, a chartered accountant who leads a consultancy practice in the UAE, said he knows of companies that have had their registration forms rejected without a full explanation.

“I know of three entities that have been rejected for reasons of turnover. All believe that they will soon reach the minimum threshold for registration,” he said in reference to the Dh375,000 threshold.

“How is the FTA currently measuring 'soon' by way of accepting an application?”

"When the entities e-mail the FTA they are not getting a response. Ringing doesn't help as individual cases are not entertained, just queries on the law.

"The FTA could support a lot of worried entities by either replying or better, releasing a statement clarifying the requirements for registration."

Federal Tax Authority clarifies registration procedure for VAT in the UAE

The Federal Tax Authority, FTA, has called on natural and legal persons exercising business in the UAE to expedite their registration process for the Value Added Tax, VAT, to avoid the risk of missing the deadline, on 1st January 2018.

This applies to businesses whose taxable supplies and imports of goods and services exceed AED375,000 over the previous 12 months. Taxable supplies are identified as all supplies of goods and services made by a person who is not exempt.

Registration is available on a 24/7 basis through the VAT website. Businesses are required to visit the website, select the e-Services portal, sign up and create an account. Once the email has been verified, they can log in and register.

The FTA has urged businesses to provide accurate information and make sure they enter it properly into the application form. To complete the registration process, scanned documents must be attached,

•  The business or trade license
•  Passport Copy
•  Emirates ID, for UAE residents, of the manager or owner of the business.
• The Authorized signatory, if the signatory is not the manager him/herself, as well as proof of authorization for the manager or signatory for example articles of association, power of attorney attested by notary.

 Issuing a Tax Registration Number, TRN, may require up to 20 working days or less. Therefore, and in order to ensure that the application is processed, and the TRN issued before 1st January, 2018, the FTA urged businesses to complete their registration to avoid the administrative penalty of AED20,000, as well as additional penalties related to late payment of tax, according to the Cabinet Decision No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE Two or more legal persons conducting business in partnership may apply for Tax Registration as a Tax Group if each of them has a place of establishment or fixed establishment in the UAE; if the persons are related parties, thus not separated in economic, financial or regulatory aspects; or if one or more of the Persons in the group control the others.

Persons intending to register as a Tax Group need to nominate a representative member who shall apply to register them. The representative member applies first by completing a VAT registration application stating that the intention is to be part of a Tax Group.

After the representative member is issued with a Tax Identification Number, TIN, the additional members of the group may be added through Tax Group Registration. Members can be added whether they have registered separately or not. After the process is complete and the application to add members has been submitted, a TRN will be issued for the whole Group.

More information can be found in theLegislation and Guides section, on the FTA website.