How to Check the Validity of a Tax Registration Number (TRN) in UAE
Additionally, improper TRN use can harm both the community and the business. It is essential to be aware of TRNs to protect your business from dishonest suppliers who could defraud you using fake TRNs. This will allow you to operate your company in the uae legally and safely. To claim the value-added tax on purchases, verification of VAT is essential. This article will help you understand the process for verifying Tax Registration Numbers (TRN) in the UAE and how tax registration services provided in the UAE can assist you in operating safely within the tax system.
Caviar Accounting & Bookkeeping LLC is a Dubai-based firm providing comprehensive financial services, including VAT consultancy, corporate tax assistance, internal auditing, software solutions, and bookkeeping designed to ensure accuracy, compliance, and strategic growth for businesses across the UAE. Within the UAE, companies that have been licensed for Value Added Tax (VAT) TRN from the FTA. This unique fifteen digit code is vital for tax related compliance and verification purposes. If you are business supplier and owner having the ability to verify a TRN will ensure the transparency of your business and prevent fraud.
What is a Tax Registration Number (TRN)?
TRN is a unique 15-digit code issued by the FTA to businesses and organizations that are registered for VAT in the UAE. It is the official identification number that binds a company to its tax obligations under VAT.
An active TRN must be present:
- Issuing VAT-compliant invoices. Businesses are required to display their tax reference number on each tax invoice they issue.
- Tax Returns and VAT Filing Businesses make use of their TRN when submitting taxes to FTA.
- Claim the Input Tax Credit Businesses can claim the VAT they paid on eligible expenditures only if the TRN of the supplier is valid.
- Planning for Legal Compliance TRN proves that a business is recognized as a legitimate business under the UAE Tax law.
In other words, every VAT registered company operating within the UAE must include its TRN in official documents such as invoices and credit/debit cards, as well as other VAT-related documents. If it is not mentioned, the business cannot collect VAT.
Importance of Checking TRN Validity
Validating the validity of a TRN is not an administrative procedure; it’s an essential security measure that is legal and financially sound for both individuals and businesses within the UAE. Because VAT compliance directly affects your financial standing and trustworthiness verifying TRNs will help you be safe and eliminate unnecessary risk.
Prevents VAT Fraud
Unregistered companies may attempt to charge VAT without authorization by using a fake or incorrect TRN. By confirming the TRN via FTA’s portal, one can quickly identify and stop fraud.
Ensures Input Tax Recovery
Businesses can only make claims for the input VAT (the VAT that is charged on purchases) when the vendor has an active TRN. If your claim is not verified, it could be rejected, which can lead to financial loss.
Builds Business Credibility
When you do business with a TRN registered VAT-registered firm, it boosts confidence, professionalism, and transparency during the transaction. Customers feel more secure knowing the company is legally operating within UAE taxes.
How to Check TRN Validity in UAE step by step guide
The FTA provides an easy to use online tool that enables anyone to confirm the authenticity of the Tax Registration Number. This procedure is fast, easy, and free, and available to both companies and individuals.
Here’s how to accomplish it:
Step 1: Visit the FTA Portal
Visit the official TRN Verification by FTA site. It is the sole reliable platform to verify the validity of TRNs for the UAE.
Step 2: Enter the TRN
Enter your fifteen digit TRN into the input box. Be sure that there aren’t any mistakes in your typing since even one wrong digit can alter the outcome.
Step 3: submit the request
Click on the “Validate” button to submit your request.
Step 4: View the Results
- If the TRN’s registration exists and is valid, and the business’s registered company name is displayed in both english and arabic.
- If the TRN’s information is in error, the system cannot display any results. This means that the TRN is either invalid or not registered. It could also mean that the TRN is inactive.
Important Tip: Always double check TRNs before accepting VAT invoices. Incorrect or missing TRNs could result in a loss of the VAT you recover on your inputs and could cause compliance issues.
Documents Where TRN Should Appear
required obligation. This guarantees the transparency, compliance, and confidence throughout any financial transaction.
Here are the essential documents in which a TRN should always be mentioned:
1. Tax Invoices
Every VAT-compliant invoice has to show the TRN of the supplier clearly. This allows customers to verify their VAT registration and ensures they are eligible for VAT input recovery.
2. Credit/Debit Notes
For refunds, returns, or adjustments, debit and credit notes issued by businesses must contain the TRN to be valid in accordance with VAT laws.
3. Tax Returns
The TRN is used by businesses to authenticate and identify their VAT filings when they submit them to the Federal Tax Authority.
4. Contracts and business agreements
The TRN is required if VAT is charged in a contract, agreement, or other document. This is to confirm that the business has the authority to collect VAT.
There are a few common reasons why a TRN may be invalid.
- Mistype the TRN numbers.
- The business has not been registered for VAT.
- The FTA has suspended or cancelled TRN.
- Use of a false TRN.
What Should You Do if You Find a TRN that is Invalid?
If a TRN is not validating on the FTA:
- Check the number to ensure it is correct.
- The business should provide you with the correct TRN.
- Unregistered businesses are not entitled to VAT.
Report any suspicious cases to the Federal Tax Authority.
The benefits of TRN verification for businesses and customers
Verifying the TRN is more than a precaution. It creates an environment of transparency and trustworthiness in the UAE. This simple step has significant benefits for both companies and their customers.
Benefits to Businesses
Smooth Filing of VAT Return – Ensures only valid TRNs in transactions. This ensures VAT returns are error-free, compliant, and accurate.
Claim Eligible Input Tax: Businesses can only claim VAT on their expenses if the supplier’s TRN is valid. This prevents claims from being rejected.
Improved market reputation – Demonstrates professionalism and fosters stronger relationships with clients, partners, and stakeholders.
Reduced Penalty Risk – Minimizes fines, compliance issues, and penalties due to invalid TRNs.
Benefits to customers
Legal Tax Assurance – Confirms the VAT collected by a company is legal and charged in accordance with FTA regulations.
Protection Against Fraud – Protects customers against being misled by companies that are not registered and try to collect VAT illegally.
Confidence in Transactions – Creates trust in the fact that you are dealing with VAT-registered, legitimate businesses that operate within UAE law.
The conclusion
Verifying the legitimacy of the TRN in the UAE is a straightforward but crucial step for both businesses and customers. It helps ensure compliance with FDA Regulations and builds confidence in financial transactions. Verifying a TRN before conducting business helps avoid unnecessary risks and ensures VAT is billed legally and transparently. Suppose you are a business seeking input tax claims or an individual looking for assurance from a client that the TRN is verified. It provides transparency, assurance, accountability, and security for every transaction.
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FAQ
Anyone can use the FTA online tool to check TRNs.
The FTA portal takes less than one minute to use.
Although it is not legal, it's highly recommended to avoid fraud and ensure VAT compliance.
It is important to note that VAT-registered businesses are required by law to display TRNs in their invoices.
The FTA can deactivate a TRN if an eligible business closes or if the FTA no longer considers it to be in good standing.
