TRN Verification: Check TRN validity online
TRN verification and validity for all UAE registered businesses ensure that no frauds or scams associated with the value-added tax can escape the government’s notice. The TRN, Tax Registration Number, is uniquely assigned to every business registered with the UAE government. Anyone who does not have a valid TRN number is not allowed to charge customers or client companies with VAT. This step has curbed revenue losses for the Government and created a system that is being praised by authorities worldwide.
TRN verification is necessary before closing any agreement with a company, firm, or creator from UAE. Not only that, International companies operating within the national territory of UAE are required to obtain their own TRN number as well. In this article will look at the step-by-step guide to verify updated and currently valid TRN numbers in UAE.
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Table of Contents
What is TRN?
TRN or Tax Registration Number is a unique number issued to every registered business by the Federal Tax Authority in UAE. FTA provides every company with a 15-digit TRN ID, which is uniquely generated for every business. This number not only gives businesses the authority to charge for tax but also acts as an all-in-one identification number that attests to the existence of a legitimate firm that a said company claims to be. Only someone with a TRN ID can apply for Tax Clearance Certificate and other government-ensured benefits.
The Importance Of TRN Verification
TRN is also known as the VAT number or the VAT registration number. Business owners must mention the VAT identification number in the following areas:
- Tax invoice
- Tax credit note
- VAT returns
Additionally, every company must disclose VAT numbers to customers or clients when requested so that their TRN can be verified. TRN verification is essential for any buyer or client to perform for the following reasons-
- Verification ensures that the business is registered and legal so that the VAT charged from the customer reaches the UAE government.
- It ascertains that the business follows all the laws set by UAE, not only in tax-related areas but also in social and cultural settings.
- It helps recognize and identify fraudulent claims and scam behavior.
- Proves that the business has successfully engaged in transactions with legal clients and files their VAT regularly.
- Ensure that the VAT paid to someone is available to the buyer as a part of their input tax credit. (If the government recognizes the company you paid the VAT to, you might not be able to get the Input Tax Credit benefits).
- Most importantly, TRN verification organized by FTA is proof of compliance with the existing VAT loss of UAE, which saves both parties from further financial stagnation.
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TRN Verification in UAE?
Fortunately, verifying the TRN number of any business registered with FTA is relatively easy. According to the updated laws of UAE, anyone from the general public, as well as visitors in UAE who are purchasing local products, can carry out TRN verification.
Here are the steps to do so:
- Visit the official Federal Tax Authority website.
- Click on TRN in the right-side column.
- Enter the TRN number and complete the captcha.
- Click on Submit button
- The website will now show all the business details in English and Arabic.
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Conclusion
It is easy to overlook TRN verification, especially when many transactions are routinely sanctioned. General buyers and big companies have fallen prey to fraudulent VAT scams in UAE. Further, companies claim to be registered businesses to scam clients and acquire their online financial information; whenever a company sounds shady, verifying their registered existence before believing anything they say is essential.
Thankfully, the UAE has made verifying information about businesses an instant process. No matter how much urgency clients have, they must not overlook the VAT number verification process.