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Home » What’s Federal Tax Authority TRN Verification? And why is it required for all businesses?

What’s Federal Tax Authority TRN Verification? And why is it required for all businesses?

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federal tax authority trn verification

TRN is shortened to (Tax Registration Number), which consists of a specific 15-digit code that’s provided by the FTA (Federal Tax Authority) in the UAE. This particular code is used to identify businesses and individuals identities for tracking taxes that should be paid for each.

Basically, VAT is a type of tax that was introduced in 2018 with a fixed rate of 5%. It’s charged by the federal tax authority UAE from businesses to their customers to be returned back to the government in a form of VAT. Only registering businesses are required to charge 5% VAT at their customers and issue a unique TRN number.

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Importance of Federal Tax Authority TRN verification

TRN is important for many commercial reasons, and legal ones, these reasons include:

  • Confirming the legitimacy of VAT registration from a business and its TRN verification authenticity. 
  • Preventing VAT forgery & fraud, such as charging VAT without issuing a valid TRN.
  • Making sure that a specific seller is using a valid TRN in the invoice for sold goods or services.
  • Validating all legal documents that are used to issue a TRN such as: Tax invoice, Credit notes, and VAT returns.
  • Separating registered and unregistered businesses for the United Arab Emirates VAT. To make sure that the taxable person with valid TRN can charge VAT on all invoices.

That’s why the Federal Tax Authority UAE uses a unique TRN to identify registered businesses and keep track of their transactions. For this reason, unregistered companies aren’t allowed to collect VAT and deposit this VAT amount collected from the customers to the federal tax authorities. 

Along with the confidentiality of this data, there are many fraud cases where companies use fake and illegal TRNs to collect VAT from their customers and get unauthorized profits.

When does TRN verification federal tax authority is required?

There are some cases where federal tax TRN verification is required before engaging in any transactions with a VAT-charging company, these cases include:

  1. Entering into contracts, or receiving invoices without compliance with UAE tax laws. 
  2. Conducting business affairs with a company using fake TRN.
  3. Dealing with a firm that uses TRNs that are less or more than 15 digits, with a starting number that isn’t 100, or even starting with an improper format.
  4. Relying on visual inspections, without more investigational checks for all business procedures whether buying or selling goods or services.

Hence, TRN verification check is always a necessity before doing any business transaction for guaranteeing a secure trading complied with FTA’s tax verification.

Required steps for Federal Tax Authority TRN verification

Federal tax authority TRN verification is done through easy procedures that should be conducted properly in order to avoid any miss practicing. These steps are:

  • Visiting the federal tax authority UAE official website.
  • Registering for a new account of E-services and filling out the registration form credentials.
  • Receiving TRN complied in line with UAE VAT regulations
  • Clicking on the ‘TRN’ icon that’s found on the right-side panel.
  • Entering the TRN and Captcha code carefully in the boxes provided.
  • Finally, clicking on the ‘Search’ button.

By the end of these procedures, the business’s name that’s linked to the TRN will show the same name of the registered record.

How to check validity of federal tax TRN verification

For checking the validity of the Federal Tax Authority TRN verification, similar steps to the verification itself could be used. These steps are done as follows:

  • Logging in to the Federal Tax Authority UAE E-Services portal using own credentials.
  • Accessing the ‘TRN Verification’ page on the top right panel.
  • Entering the TRN Number in the proper “Search” field.
  • Viewing the results of the particular TRN to check its validity on the official website of the FTA. 

The steps can vary a little bit if the search is intended to find the company name through Tax Registration Number verification.

TRN verification by company name

For a successful verification of the Tax Registration Number (TRN) issued in the Federal Tax Authority UAE by company name, the same steps of initial verification should be followed excluding the last step. 

 After searching the official website through TRN, the name of the company alongside the TRN will be displayed. Through this TRN, vendors can have access to many facilities such as the company’s invoices or receipts, the company’s website, and VAT registration for TRN verification. 

Ways of Federal Tax Authority TRN verification

There are two applicable methods for verifying the TRN in the UAE:

  1. Online Method: For a feasible way to verify a TRN online, the first step is to visit the FTA’s website and enter the TRN number in the specified section. Secondly, clicking “Validate” for displaying the registered name and address of the business for the valid TRN.
  2. By phone: TRN verification can happen through calling the Federal Tax Authority’s customer support at 800 82923, and an FTA representative will be requesting the TRN number to verify it successfully.

Conclusion: Guided way for Federal Tax Authority TRN verification!

Obtaining a unique TRN is significant for all entrepreneurs conducting business affairs in the UAE. That’s why registering for the VAT and issuing a TRN is the right decision for tracking all business transactions and checking the continuous success of goods or services sold. 

TRN verification plays an important role in ensuring compliance with UAE’s tax regulations, avoiding penalties, and preventing VAT fraud. Hence, Federal Tax Authority TRN verification is a necessity for all businesses.

Are there any penalties for not verifying a TRN?

Yes, failed businesses for verifying a TRN might face high penalties for not possessing a valid TRN.

Is there any difference in TRN verification for a non-resident business?

Not at all, non-resident businesses can use the same steps mentioned for the resident businesses.

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