What Happens After You Get Your TRN (Tax Registration Number)?
Introduction
Once your VAT registration is approved by the Federal Tax Authority (FTA), you will receive a Tax Registration Number (TRN). This unique 15-digit number officially recognizes your business as a VAT-registered entity in the UAE. But what comes next?
Let’s explore the key responsibilities and steps you must take after receiving your TRN.
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1. Understanding Your TRN
A TRN is issued by the FTA and must be used on all tax-related documents. It serves as your business’s identity for VAT purposes, ensuring compliance in the UAE’s tax ecosystem.
Example TRN format: 1000 1234 5678 901
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2. Update Invoices and Documents
You must include your TRN on the following:
• Tax invoices
• Credit notes
• VAT returns
• Contracts and purchase orders
Invoices should also contain:
• Supplier name, address, and TRN
• Invoice date and unique number
• Description of goods/services
• VAT amount charged
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3. Start Charging VAT
You are now authorized to charge 5% VAT on all taxable supplies. This must be clearly shown on every invoice.
Make sure your system is configured to:
• Add VAT automatically
• Separate VAT amount from the base price
• Record VAT collected (output VAT)
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4. Maintain Proper Records
VAT-registered businesses must keep the following for at least 5 years:
• Sales and purchase invoices
• Import and export documents
• Credit and debit notes
• VAT return filings
• Accounting books and ledgers
FTA may inspect your records during audits.
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5. File VAT Returns
Once registered, you must file VAT returns on a quarterly or monthly basis (as assigned by the FTA). A VAT return summarizes:
• Output VAT collected on sales
• Input VAT paid on purchases
• Net VAT payable or refundable
Filing is done via the FTA e-Services portal.
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6. Pay VAT On Time
The payment must be made by the due date—usually within 28 days after the end of each tax period. Late payments attract penalties.
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7. Comply with Ongoing Obligations
As a TRN holder, you must:
• Issue valid VAT invoices
• Track taxable and exempt supplies
• File returns accurately and on time
• Respond to FTA queries or audits
• Update the FTA about any business changes (name, address, contact, etc.)
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Conclusion
Getting your TRN is only the beginning of your VAT compliance journey in the UAE. It brings with it key responsibilities such as issuing correct tax invoices, filing returns, and maintaining proper records.
For support in managing VAT obligations after TRN issuance, contact Sheikh Anwar Accounting and Auditing LLC—your trusted VAT partner in the UAE.
