Applying for a Tax Registration Number (TRN) in the UAE

Handling taxes can be challenging, especially when compliance is mandatory, and every missed detail leads to penalties. In the UAE, obtaining a Tax Registration Number (TRN) is not just a formality; it’s an essential requirement for businesses to operate legally under the Value Added Tax (VAT) system.

Without it, businesses cannot issue VAT invoices, claim tax refunds, or adhere to the Federal Tax Authority’s (FTA) regulations. As of October 2021, VAT contributed over AED 95.5 billion to UAE government revenues, underscoring its importance.

Despite this, the process of applying for a TRN can be daunting. Businesses often struggle with unclear eligibility criteria, lengthy documentation requirements, and application errors.

This guide will simplify the TRN registration process for you. We’ll break it down step by step, covering what a TRN is, why it’s essential, how to apply for it, and how to avoid common mistakes along the way.

What is a Tax Registration Number (TRN), and Why is it Important?

A Tax Registration Number (TRN) is a unique 15-digit identification number issued by the Federal Tax Authority (FTA) in the UAE to businesses and individuals registered for VAT.

This number acts as proof of VAT registration and is essential for complying with the country’s tax laws.

Here’s why the TRN is so important:

• Ensures legal compliance: Businesses must include their TRN on all tax-related documents, such as VAT invoices, credit notes, and VAT returns, to meet the Federal Tax Authority’s (FTA) requirements.
• Enables tax recovery: With a TRN, businesses can claim VAT refunds on eligible purchases, improving cash flow and reducing costs.
• Provides accountability: The TRN allows the government to track and verify financial transactions, ensuring transparency and reducing the risk of errors or fraud.
• Facilitates business operations: Companies with a TRN can charge VAT to their customers legally, which is necessary for conducting business in the UAE.

Having a TRN helps your business remain compliant and builds trust with clients and stakeholders by showcasing adherence to legal and financial standards.

What are the Eligibility Criteria for VAT Registration and Getting TRN in UAE?

Not every business in the UAE is required to register for VAT and obtain a Tax Registration Number (TRN).

The Federal Tax Authority (FTA) has set specific thresholds to determine whether VAT registration is mandatory or voluntary for a business. Understanding these criteria ensures that your business remains compliant and avoids penalties.

Here’s what you need to know about the eligibility criteria:

• Mandatory registration: Businesses must register for VAT and obtain a TRN if:
  
  • Their taxable supplies and imports exceed AED 375,000 in the last 12 months.
  • They expect taxable supplies and imports to exceed AED 375,000 in the next 30 days.
• Voluntary registration: Businesses can choose to register for VAT and get a TRN if:
  
  • Their taxable supplies and imports exceed AED 187,500 but are less than AED 375,000 in the last 12 months.
  • Their expenses exceed AED 187,500, as they may be eligible to reclaim VAT on purchases.
• Exempt from registration: Businesses with taxable supplies below AED 187,500 are not required to register for VAT or obtain a TRN.

Additionally, businesses outside the UAE may need to register if they supply goods or services within the UAE and no other party accounts for the VAT. Meeting these criteria ensures that your business operates legally under VAT laws.

What Documents are Required to Get TRN in UAE?

Applying for a Tax Registration Number (TRN) in the UAE requires you to submit several documents to the Federal Tax Authority (FTA).

These documents ensure that your business meets the eligibility criteria and complies with VAT registration requirements. Preparing these in advance can simplify the application process and reduce delays.

Here’s a list of documents you need to provide:

• Trade license: A valid trade license for your business, showing its legal operation in the UAE.
• Memorandum of Association (MoA): This document outlines your company’s structure and operational guidelines.
• Emirates ID and passport copies: Copies of the Emirates ID and passports of all shareholders and the business manager.
• Turnover declaration: A signed letter or supporting documents showing your company’s turnover for the last 12 months.
• Bank account details: Information about your company’s UAE bank account, including the IBAN and bank name.
• Income statement: A financial statement showing your company’s revenue for the past year.
• Invoices: Sample invoices from suppliers and customers to verify business activity.
• Import/export declarations: If applicable, records of goods traded across UAE borders.
• Company contact information: Your business address, phone number, and email for communication with the FTA.

Submitting complete and accurate documents is crucial for a successful TRN application. Missing or incorrect documents can lead to delays or even rejections.

How To Apply for a Tax Registration Number (TRN) in the UAE

Applying for a Tax Registration Number (TRN) in the UAE is a straightforward process if you follow the steps carefully. 

The Federal Tax Authority (FTA) provides the EmaraTax portal for businesses to complete their VAT registration and obtain their TRN.

Here’s a simple step-by-step guide to help you through the process:

Step 1: Sign Up on the EmaraTax Portal

1. Visit the official EmaraTax website.
2. Click on the "Sign Up" button to create a new account.
3. Fill in your details, including your email address and contact information.
4. If you have a UAE Pass, you can use it to sign up faster.
5. Check your email for a verification link and click on it to complete the sign-up process.
6. Once your account is created and verified, you can log in to access the VAT registration section.
7. Once logged in, navigate to the dashboard, where you’ll see various tax services.
8. Select the VAT Registration option to begin the process.

Step 2: Start the VAT Registration Application

1. Review the VAT registration guide on the EmaraTax portal to ensure your business meets the eligibility criteria.
2. Verify that your documents, including trade license details, financial records, and Emirates ID copies, are ready.
3. Now, go to the VAT Registration section on your EmaraTax dashboard to begin your application process.

Step 3: Provide Business and Financial Details

1. Fill in the required information, including:
   
   • Applicant Details: Specify if you are registering as a legal or natural person and provide your trade license and legal structure details.
   • Contact Details: Enter your business address, email, and phone number.
   • Financial Details: Input your turnover figures for the last 12 months and expected revenue for the next 30 days. Attach supporting documents like financial statements.
   • Banking Details: Provide your UAE bank account information, including the IBAN and account holder's name.
2. Upload all necessary documents in accepted formats (PDF, JPG, PNG) ensuring each file is within the 2 MB size limit.

Taking time to complete the form accurately reduces the chances of errors or delays during the approval process.

Step 4: Review Your Application for Accuracy

1. Carefully review all the information you have entered in the VAT registration form.
2. Double-check uploaded documents to ensure they are correct, complete, and meet the FTA’s requirements.
3. Tick the declaration box to confirm that the information provided is accurate and that your business complies with VAT regulations.

This step is crucial to avoid rejections or requests for additional information, which could delay the approval process.

Step 4: Submit Your Application to the FTA

1. Once you have reviewed and declared your information, click the "Submit" button on the EmaraTax portal.
2. The Federal Tax Authority (FTA) will receive your application for review.
3. You will receive a confirmation notification acknowledging the submission.

After submission, the FTA typically processes applications within 20 business days, but it may take longer if additional details or documents are required. Ensure you monitor your EmaraTax account and email for updates or requests from the FTA.

What Happens After VAT Registration?

Once you’ve successfully submitted your VAT registration application, the Federal Tax Authority (FTA) reviews the details and documents to ensure compliance with the regulations.

Here’s what happens next:

• Approval and TRN issuance:
  
  • If the FTA approves your application, they will issue your Tax Registration Number (TRN).
  • You’ll receive a notification via email and can download your VAT certificate, which includes the TRN, from your EmaraTax account.
• VAT certificate details:
  
  • Your VAT certificate will include your TRN, the effective date of VAT registration, and other relevant business details.
  • This certificate serves as proof of registration and is required for tax-related activities.
• Tax obligations:
  
  • Start including your TRN on all VAT invoices, credit notes, and returns.
  • Ensure compliance by maintaining accurate financial records and filing VAT returns on time.
• FTA follow-ups:
  
  • The FTA will notify you via email or your EmaraTax account if additional information or documents are required.
  • Respond promptly to avoid delays or complications.

Common Challenges and Mistakes to Avoid

Applying for a Tax Registration Number (TRN) can be straightforward, but businesses often face challenges that delay the process or result in rejections. Being aware of these common mistakes can save you time and frustration.

• Submitting incomplete applications:
  
  • Please ensure you fill out all mandatory fields in the VAT registration form. Missing details can lead to errors and rejection.
• Uploading incorrect document formats:
  
  • Ensure all required documents are in the accepted formats (PDF, JPG, PNG) and under the size limit of 2 MB.
• Missing eligibility criteria:
  
  • Verify that your business meets the mandatory or voluntary registration thresholds before applying. Failure to meet the criteria can result in unnecessary rejection.
• Providing inaccurate information:
  
  • Double-check business details, such as turnover figures, trade license numbers, and banking information, to ensure accuracy. Errors in these fields can delay approval.
• Delaying responses to FTA queries:
  
  • If the FTA requests additional information or clarification, respond promptly to avoid delays in processing your application.
• Neglecting proper record-keeping:
  
  • Maintain clear records of financial transactions and supporting documents for VAT registration. Poor record-keeping can cause complications during the application review or audits.

Stay VAT-Compliant with Alaan’s Smart Automation Tools

Managing VAT compliance can feel overwhelming, especially when juggling receipts, invoices, and tax reporting. At Alaan, we simplify the process, helping your business stay compliant with VAT regulations while saving time and reducing manual work.

Here’s how Alaan helps with VAT compliance:

• Automated Receipt Management: Once you make a VAT-related expense, upload the receipt through Alaan’s app or Chrome extension. Our AI-powered system automatically extracts key details like the VAT amount, vendor name, and transaction date. 

This ensures compliance with FTA standards and eliminates the need to store physical copies, making your VAT management seamless and error-free.

• Streamlined Bookkeeping: Alaan integrates seamlessly with leading accounting software, such as Xero, QuickBooks, and NetSuite. This allows businesses to sync VAT records instantly, ensuring accurate entries and reducing manual errors.
  
  
• VAT-Compliant Transactions: Use Alaan’s corporate cards for VAT-eligible purchases. The platform ensures all transactions are categorised correctly, making VAT filings straightforward and hassle-free.
  
  
• Real-Time Visibility: Gain instant insights into VAT expenses through Alaan’s dashboard. This ensures you stay on top of your VAT obligations and maintain transparency in your financial records.
  
  
• Maximise VAT Recovery: With AI-driven tools, Alaan helps identify VAT-compliant receipts and flags any errors or missing details, enabling you to claim refunds confidently.

By automating time-consuming tasks and providing real-time visibility into your expenses, Alaan enables businesses to focus on growth while ensuring compliance with VAT regulations. 

Conclusion

Applying for a Tax Registration Number (TRN) is a vital step to ensure your business operates legally and complies with UAE VAT regulations. While the process can feel overwhelming, having the proper knowledge and approach makes it manageable.

At Alaan, we simplify VAT-related tasks, providing businesses with the tools they need to save time and stay compliant. With streamlined processes and intelligent automation, here’s how we help:

• Save ±16 hours every month: Automate the tedious processes of expense tracking, receipt management, and VAT bookkeeping. With Alaan, you can handle these tasks in just a few clicks, freeing up time for more critical business activities.
• Earn 2% cash back on eligible transactions: Use Alaan’s corporate cards for VAT-eligible purchases and get rewarded. The cashback feature adds an added financial benefit to your regular expenses.
• Ensure hassle-free VAT compliance: Alaan’s AI-powered system automatically verifies receipts, categorises expenses, and flags errors, reducing the risk of mistakes and keeping your VAT filings accurate.
• Access real-time VAT insights: Stay on top of your VAT obligations with a user-friendly dashboard that shows detailed reports of all VAT-related expenses, giving you complete visibility and control.

With Alaan, VAT compliance becomes simpler, faster, and more reliable. Book a free demo today to see how we can simplify your VAT compliance, saving you time and effort while keeping your business on track.