The TRN tax registration number is compulsory to been issued to any entity which is registered for a VAT in the UAE by the FTA that is the Federal Tax Authority. When you launch a businesses or any sort of trading body, you are likely to receive a fifteen digit number that that help the Federal tax authority differentiate between you and the rest. This number allows the FTA to recognize you ensure compliance, track the transactions made by your business. With the emerging intricacies in the government system and the increasing percentages of business, the requirement for TRN number is becoming obligatory for every business owner or entrepreneur to attain.
Why you Need a TRN in the UAE
A tax registration number is a unique number that is a must mention on all of the purchase transactions and sales made by a business or any individual in order to align to VAT regulations and compliance. According the Cabinet Decision No. 40 of the year 2017 on the managerial penalty for any violation of Taxation laws in UAE an entitled business need to register for the VAT in UAE in order to avoid a particular penalty focus to tables of defilements and managerial penalties appendix. The Tax registration number enables a streamlined procedure for interaction between purchasers and sellers for payment of VAT as stated in tax invoice.
This is another important process you will need to pay heed to. In case your business is eligible for the de-registration process of VAT, post the, the TRN shall be cancelled. The cancellation shall take place on the very last date of pertaining taxation period. On the other hand, the trading body applies for the de-registration of VAT in a taxation group, in that case, a new TRN shall be generated and provided to the rest of the amendment of the taxation group. The TRN that was providing to a specific business shall be registered and re-activated for the VAT as a solitary proprietorship in UAE.
VAT registration might be optional, but you should probably do it anyway
In case your enterprise is new, you have perhaps registered already for the VAT. Or perhaps you did not record as you did not consider you had to. Whatever is the matter if you have not got yourself registered for the Tax registration number yet, it is strongly recommended that you get done with the formalities unless you have met the registration threshold.
Another reason to get your TRN immediately is that there is a VAT registration needed in case your business earns an overall remuneration of about thirty-two thousand per month that is 375 K every year. If a business owner avoids a VAT registration, one will have to pay a penalty of AED 20,000. However, as you attain an exception from thee registration and most of the supplies including goods and services are nil-rated; you are not eligible to claim your input tax back, which is the tax you have paid to your business suppliers.