TRN Verification is a necessary procedure to both businesses and individuals under the Value added tax (VAT) regime of the UAE. Be it the issuing of t
TRN Verification is a necessary procedure to both businesses and individuals under the Value added tax (VAT) regime of the UAE. Be it the issuing of tax invoices, suppliers, or submission of VAT returns, the verification of a TRN number UAE can help ensure that you comply with the Federal Tax Authority (FTA) regulations and avoid fines and frauds in your business.
This guide provides information on what a TRN is, why it is important to verify a TRN, and how to conduct a TRN number check online in the UAE.
What Is a TRN Number in UAE?
A Tax Registration Number (TRN) is a 15 digit number that is assigned to businesses and individuals registered to pay VAT by the UAE Federal Tax Authority. The VAT registration is approved with a TRN assigned by the FTA that should be displayed on:
- VAT tax invoices
- Credit notes and debit notes
- Tax returns and official tax documents.
The TRN number UAE is a document that serves to certify that a business is registered to pay and collect taxes.
What Is TRN Verification?
TRN Verification entails ensuring that a TRN is valid, active and registered by the Federal Tax Authority. Businesses can use TRN number check to determine the authenticity of their own TRN or the suppliers, customers, or partners.
This check can be done online by using the official portal of FTA and it is free.
What Is the importance of TRN Verification in UAE?
TRN verification is a significant part of the VAT compliance and risk management in businesses. Key reasons include:
Ensures VAT Compliance
Checking a TRN will ensure that the company has the right to charge VAT which will keep you in accordance with the laws of the UAE VAT.
Prevents VAT Fraud
TRN number check is used to prevent the use of invalid or bogus TRNs by unregistered organizations to impose illegal VAT charges.
Favors correct VAT Filing.
The employment of certified TRNs will guarantee proper reporting of VAT and reduce the chance of errors when submitting the VAT returns.
Eschews Fines and Legal Problems.
Working with unregistered suppliers can result in fines, input VAT rejections or compliance audit.
Trn Verification in UAE Online.
The process of checking a TRN number in UAE is very easy and fast. To complete TRN verification online, follow the following steps:
Step 1: Go to the Federal Tax Authority Portal.
Visit the official Federal tax authority (FTA).
Step 2: Log in to TRN Verification Tool.
Go to the TRN Verification or taxpayer Verification page on the site.
Step 3: Enter the TRN Number
Enter the TRN number of UAE on the invoice or document with all 15 digits.
Step 4: Security Check done.
Press the captcha code displayed on the screen.
Step 5: Visualize Verification Results.
The system will show the registered business name and confirmation of the validity of the TRN and its being active.
This is a check on your TRN in a few seconds.
What Information Can You check with the TRN?
Using TRN verification, you will be able to verify:
- Validity of the TRN number
- Trademarked business or personal name.
- VAT registration (active or inactive)
Non-disclosure of detailed financial or tax filing information is however done due to privacy reasons.
Typical Problems during TRN Number Check.
Although the validation of TRN is easy, the user might have the following challenges:
Incorrect TRN Entry
The slightest error of one digit can result in an invalid answer. Never forget to check the number twice.
Recently Registered TRNs
Newly issued TRNs can be delayed to be reflected in the verification system.
Cancelled or Deregistered TRNs.
In case a business is deregistered to pay VAT, the TRN can be inactive.
Problems that occur should be addressed by communicating directly to the Federal Tax Authority in case they do not resolve.
At what point in time should Businesses conduct TRN Verification?
TRN checking must be done by businesses in the following cases:
- Prior to the process of onboarding new suppliers or vendors.
- Prior to claiming input VAT
- When giving or accepting VAT invoices.
- With the audits and internal compliance checks.
Conducting periodic TRN number checks contributes to a high level of compliance practice and minimizes risks that are related to VAT.
Best Practices TRN Verification of Businesses.
To guarantee successful VAT implementation in the UAE, the businesses are expected to:
- Keep a list of certified TRNs.
- Conduct regular TRN checks on major suppliers.
- Familiarize the train finance departments with VAT requirements and TRN numbers.
- Only certified TRNs should be used on tax invoices.
The practices contribute to transparency and trust in business dealings.
Conclusion
TRN Verification in UAE is an important compliance procedure of businesses registered under VAT. Through the FTA portal, businesses are able to ensure that their VAT registration is not fraudulent and that their tax reporting is correct by checking the TRN number within a few seconds.
Regardless of the purpose of verifying your own TRN number UAE or the supplier information, frequent TRN verification facilitates the efficient functioning of the business and leaves your business out of the penalty and compliance risks.
