
UAE is one of the most business-friendly destinations in the world, offering low taxes, world-class infrastructure, and easy company setup procedures. However, as a business grows and starts generating taxable income, obtaining a Tax Registration Number (TRN) becomes mandatory. This guide explains everything you need to know about TRN in UAE — what it is, why it matters, who needs it, the documents required, and the step-by-step registration process.
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What is a TRN (Tax Registration Number) in UAE?
A Tax Registration Number (TRN) is a unique 15-digit identification number issued by the Federal Tax Authority (FTA) of the United Arab Emirates to businesses that register for Value Added Tax (VAT).
The TRN helps the government identify registered entities and track their VAT-related transactions. Once a business receives its TRN, it can legally charge VAT on goods and services, file tax returns, and claim input VAT credits.
Importance of a Tax Registration Number in UAE
Having a TRN is essential for businesses operating in UAE that meet the VAT registration criteria. Here’s why it matters:
- Legal Compliance – Businesses with annual taxable supplies exceeding the threshold must register with the FTA. Operating without a TRN when required can lead to penalties.
- VAT Invoicing – Only TRN-registered businesses can issue valid VAT invoices and collect VAT from customers.
- Input VAT Recovery – Registered companies can claim refunds on VAT paid for business expenses.
- Credibility and Transparency – A TRN enhances your business’s credibility with clients, suppliers, and government agencies.
- Smooth Audits and Accounting – Having a TRN ensures proper tax reporting and simplifies audits or financial checks.
Eligibility for TRN Registration in UAE
The FTA requires businesses to register for VAT (and thereby obtain a TRN) once they meet specific annual turnover thresholds:
- Mandatory Registration:If taxable supplies and imports exceed AED 375,000 per year.
- Voluntary Registration: If taxable supplies or expenses exceed AED 187,500 per year.
Both residents and non-resident businesses operating in the UAE are eligible, provided they meet these criteria. Freelancers or small business owners can also voluntarily register if they expect their revenue to grow.
Documents Required for TRN Registration in UAE
Before you apply for your TRN, gather the following documents to ensure a smooth process:
- Trade License Copy (valid and active)
- Owner’s Emirates ID and Passport Copy
- Memorandum of Association (MOA) or company formation documents
- Contact Details – registered address, phone, and email
- Bank Account Details – IBAN and bank name
- Turnover Proof – audited financial statements or invoices showing taxable supplies
- Customs Code (if applicable)
- Business Activities Description – nature of goods or services provided
Make sure all documents are clear, updated, and match your trade license details.
How to Get the TRN Online in UAE?
The FTA has made the VAT registration process completely online. Here’s how you can obtain your TRN:
Step 1: Create an Account on the FTA Portal
- Visit the Federal Tax Authority website.
- Click on “Sign up” and create a new user account by providing your email, contact number, and password.
- You will receive a verification link by email.
Step 2: Log In and Start VAT Registration
- After verification, log in to your FTA account.
- Select “VAT Registration” under the e-Services section.
- Read the guidance notes carefully before starting.
Step 3: Fill Out the VAT Registration Form
- Complete sections including:
- Business details (name, trade license, contact info)
- Applicant details (partners, owners)
- Turnover and expected revenue
- Business activity description
- Customs registration details (if any)
Step 4: Upload Supporting Documents
- Attach all required documents in PDF format.
- Ensure clarity and consistency to avoid delays.
Step 5: Review and Submit
- Double-check all details for accuracy.
- Once submitted, the FTA will review your application.
Step 6: Receive Your TRN
- If approved, you’ll receive your Tax Registration Number via email and through your FTA dashboard.
- The FTA may take 3 to 5 working days to issue the TRN, depending on the completeness of your application.
Cost of TRN Registration in UAE
The FTA does not charge any government fee for TRN or VAT registration. However, many businesses choose to work with tax consultants or business setup firms for documentation and compliance — which can cost between AED 800 to AED 1,500 depending on the service provider.
Post-Registration Compliance
After obtaining your TRN, businesses must:
- Charge 5% VAT on taxable goods and services.
- Issue VAT-compliant invoices showing the TRN number.
- Maintain proper accounting records for at least five years.
- File VAT returns quarterly (or as assigned by the FTA).
- Pay VAT dues within the specified deadline to avoid penalties.
Penalties for Non-Compliance
Failing to register when required or submitting false information can result in fines:
- AED 10,000 for failure to register for VAT.
- AED 20,000 for not displaying VAT registration details on invoices.
- Additional penalties for incorrect filings or late payments.
It’s advisable to maintain updated records and ensure timely filings to avoid these penalties.
Conclusion
Obtaining a Tax Registration Number (TRN) in UAE is a crucial step for any business that crosses or expects to cross the VAT threshold. The process is simple, online, and free — provided you prepare your documents correctly and follow FTA guidelines.
With a TRN, your business not only remains compliant but also gains credibility, transparency, and access to tax benefits that support sustainable growth.
