TRN Verification is one of the essential compliance requirements of the companies that fall under the UAE Value Added Tax (VAT) system. All businesses registered under VAT are assigned a TRN number UAE that needs to be confirmed as authentic, compliant with regulations and proper tax reporting. Lack of conducting frequent TRN number audits can subject businesses to VAT fines, frauds, and denied input tax refunds.

This paper describes the importance of TRN verification to businesses, the process of a TRN number verification in the UAE, and the best practices to ensure that VAT is compliant.

What Is a TRN Number in UAE?

Tax Registration Number (TRN) plays the role of a 15-digit number that is assigned by the Federal Tax Authority (FTA) to companies and individuals registered to collect VAT within the UAE. This figure affirms that this entity is legally authorized to charge, collect and pay VAT.

The following must be mentioned in the TRN number UAE:

  • VAT tax invoices

  • Credit and debit notes

  • VAT returns

  • Other documents related to taxation that are official.

The importance of TRN Verification to Businesses.

Ensures Legal VAT Charging

Through TRN verification, the businesses ensure that they and their suppliers are registered to charge VAT.

Reduces Risk of VAT Fraud

TRN number verification is used to detect fake or inactive TRNs that are utilized by unregistered bodies to illegally gather VAT.

Protects Input VAT Claims

Claiming of input VAT is possible when it is registered with suppliers. Confirming TRNs is a way of claiming VAT.

Supports Audit Readiness

Maintaining certified TRNs can assist businesses to be ready to comply with the FTA audits and reviews.

TRN Verification in UAE

Step 1: Access the FTA Website

Go to the official portal of the Federal Tax Authority.

Step 2: Start TRN Verification Tool.

Go to the Taxpayer Verification or TRN.

Step 3: Enter the TRN Number

Enter the TRN number UAE in its entirety of 15 digits.

Step 4: Finish Captcha Authentication.

Type in security code displayed on the screen.

Step 5: Check Verification Results.

The registered business name and TRN status will be displayed in the system.

It is a process of TRN number checking, which can be done in a few seconds.

At What Time should Businesses Perform TRN Verification?

Under the following circumstances, businesses are supposed to verify TRNs:

  • Prior to the acquisition of suppliers or vendors.

  • Prior to claiming input VAT

  • When issuing VAT invoices

  • As part of internal audits and compliances.

The frequent TRN checking makes the VAT compliance stronger and minimizes financial risk.

General TRN Verification Problems.

Incorrect TRN Entry

The typing mistakes may lead to the invalid results.

Newly Issued TRNs

TRNs that have been registered in the recent past might not be immediately updated in the system.

Deregistered TRNs

TRNs with inactivity signify VAT deregistration and it should not be applied to VAT transactions.

Best Practices of TRN Verification in UAE.

  • Have an authenticated supplier TRN database.

  • Conduct periodic TRN number verifications.

  • Train finance training on VAT compliance.

  • Use certified TRNs in all tax invoices.

Conclusion

Businesses in UAE are not allowed to skip TRN Verification, it is one of the major compliance policies of VAT. A routine TRN number check via the FTA portal will assist in avoiding fraud, valid transactions of VAT and safeguard businesses against fines. Regular TRN checks contribute to a well-organized functioning and compliance in the long-term.