Businesses that work within the system of Value Added Tax (VAT) in the UAE cannot go without the TRN Number Check. In the process of issuing an invoice, verification of suppliers or in anticipation of a VAT audit, verifying the legitimacy of a Tax Registration Number (TRN) can assist in ensuring compliance with the UAE tax laws. This entire discussion outlines who is a TRN, why verification is necessary, and how companies can carry out a TRN number check in the UAE.
What Is a TRN Number in the UAE?
TRN number UAE is the Tax Registration Number that is assigned by the Federal Tax Authority (FTA) to businesses and individuals registered to pay VAT. It is a distinctive 15 digit number given upon registration of VAT.
The TRN must be displayed on:
- Tax invoices
- Credit notes
- VAT returns
- Formal correspondence VAT.
A business is not allowed to charge or reclaim VAT in the UAE without a valid TRN.
The Significance of TRN Number Check
TRN Number Check is also crucial to ensure compliance with VAT and evading fines. It assists companies to ensure that a supplier or a client has been registered authentic to pay VAT to the FTA.
The most important reasons why TRN verification is a necessity are:
- VAT Compliance: Makes sure that VAT is charged and claimed properly.
- Fraud Prevention: Does not make transactions with unregistered or counterfeit VAT.
- Audit Preparedness: Assists in documentation when auditing VAT.
- Invoice Accuracy: Authenticate tax invoices and then make payments.
Internal VAT checks that are regularly carried out by the audit firms in Dubai highly suggest regular TRN checks.
Who Is to Conduct a TRN Number Check?
TRN number check applies to various stakeholders such as:
- Finance managers and business owners.
- Departments of accounts and tax.
- Supplier verification by procurement teams.
- Accountants and VAT consultants.
- VAT reviews of audit firms in Dubai.
Any party that is engaged in any transaction that involves VAT is expected to check TRN numbers prior to claiming input VAT.
Checking TRN Number in UAE
The UAE Federal Tax Authority offers a legitimate and authentic method of checking TRN numbers on the internet.
TRN Number Check Step-by-Step Process
- Go to the Federal Tax Authority (FTA) website.
- Click on the TRN Verification or Taxpayer Search section.
- Type in TRN number as it is.
- Fulfill captcha validation.
- Send the request to see the registration details.
After verification, the system will verify the validity of the TRN number UAE and the registration of the number with the FTA.
What Information Is Displayed Following TRN Verification?
Once you have done the TRN number check, you are likely to see:
- VAT registration (active or inactive)
- Registered business name
- Type of taxable person (company or person)
Such information is used to ensure businesses verify the genuineness of VAT registration prior to transacting business.
Mistakes of TRN Number Check
Although the process is simple, businesses tend to make errors which are avoidable like:
- Inputting false or missing TRN numbers.
- Using old-fashioned or unofficial sources.
- Omission of TRN checks of long-term suppliers.
- Inviting invoices without checking the TRN.
In order to eliminate the risk of compliance, most businesses in Dubai seek the services of audit firms to check VAT documentation and verification processes.
TRN Number Check and VAT Audits
When conducting VAT audits, the FTA can look at the question of whether a business has duly checked supplier TRNs prior to claiming input VAT. Lack of carrying out a TRN number check may lead to:
- Disallowed VAT claims
- Financial penalties
- Increased audit scrutiny
Periodic TRN checking proves the due diligence and enhances the VAT compliance system of a company.
Audit Firm in Dubai in Regard to TRN Verification
The professional audit firms in Dubai have a significant role to play in assisting businesses to handle the issue of VAT. They frequently provide the following services:
- TRN checking and supplier checking.
- VAT compliance reviews
- VAT auditing services and documentation.
- Advisory on FTA regulations
Through the use of qualified auditors, companies will also be able to minimize mistakes and implement the TRN number checks in an appropriate and regular manner.
Best Practices TRN Number Check
The best practices that businesses should adhere to in order to remain compliant include:
- Check TRN numbers prior to the onboarding of new suppliers.
- Perform regular TRN scrutiny of current vendors.
- Keep a list of confirmed TRNs in order to audit them.
- Train in the finance departments on VAT checking.
This will reduce the VAT risks and ensure compliance in the long term.
Conclusion
TRN Number Check is an easy but a necessary procedure to businesses that conduct business within the VAT system of the UAE. The validation of the TRN number UAE will allow the companies to report the VAT correctly, prevent punishments, and enhance financial controls. Periodic checkups with the contribution of professional audit firms in Dubai can assist businesses to remain compliant, audit ready, and safeguarded against risks associated with VAT.