No TRN, No VAT

TRN

Tax Registration Number (TRN)

Tax Registration Number (TRN) is mandatory in order to start taking VAT. Federal Tax Authority (FTA) wants the following elements to be essentially mentioned on the bill/invoice/receipt, that is the amount paid as Value Added Tax (VAT) and also the Tax Registration Number (TRN) of the company. The invoice will be known as ‘TAX INVOICE’ as per the VAT law in UAE.

A tax invoice must include the name and address of the company. An invoice must have a tax invoice number or a unique number and date of issue, which enables identification of the tax invoice and the order of the invoice in any sequence.

Do not pay Value Added Tax (VAT) if your bill or invoice does not have these elements. If the Tax Registration Number (TRN) is not mentioned on the tax invoice then businesses will not charge VAT. This is the VAT law in UAE.

Implementation of VAT in UAE on businesses

Businesses will be responsible for carefully maintaining VAT Accounts, costs and associated VAT charges.

Registered businesses in UAE will charge VAT to all of their customers at the prevailing rate and incur VAT on goods and services that they buy from suppliers. The difference between these figures will be reclaimed or paid to the Federal Tax Authority (FTA).

Taxable businesses collect the amount on behalf of the government; consumers will pay the VAT in the form of a 5 per cent increase in the cost of taxable goods and services they purchase in the UAE.

VAT-registered businesses generally:

  • must charge VAT on taxable goods or services they supply
  • may reclaim any VAT they have paid on business-related goods or services
  • keep a range of business records which will allow the government to check that they are following the laws and rules of the government.

Businesses which are registered under the VAT must report the amount of VAT they have charged and the amount of VAT they have paid to the government on a regular basis (as per the dates mentioned on their VAT Certificate i.e Monthly or Quarterly). VAT Return submission will be done online.

If they have charged more VAT than they have paid, they have to pay the difference to the government. If they have paid more VAT than they have charged, they can reclaim the difference.

According to the FTA (Federal Law No. 7-of-2017 on Tax Procedure, ‘A Person may appoint an FTA Tax Agent to act in his name and on his behalf with regard to his tax affairs before the Authority, without prejudice to that Person’s responsibility before the Authority.’

SAB is equipped with a team of thriving VAT specialists who can help your business to overcome expected roadblocks such as lack of familiarity with VAT rules & regulations, structure and compliance issues, lack of resources and lack of a compliant accounting system. SAB is offering best VAT services in Dubai. 

Tax Agent in UAE - Tax Agent Dubai - FTA Tax agent

26 thoughts on “No TRN, No VAT

  • As a new start up we do not meet the threshold amount for VAT registration at present. Our question is the stores we supply to add VAT on our products at their end and then deduduct this from the net sales paid to us. If we cant or are not eligible for vat yet, then we are losing out as our sales our being reduced by 5% for each sale we make through a store. Is this correct?

  • Hi, good afternoon. we are new open company real estate in dubai, we would like to know how we can registered to get TRN that we need to registred DEWA as requred, if we havent still annual income?
    Please give advise.

    Thanks,
    RAMADI REAL ESTATE

    • Your company is a start up company, you do not have to register for VAT but you have to organize your accounts in a standardized way. SAB is offering best Accounting and Bookkeeping services to keep your records properly. Contact us!

  • I want to know, if the customer’s have TRN we must show customer TRN in our invoice’s or No need (Optional)?

  • If I currently do not meet the threshold to register for VAT and I only provide zero rated services, in terms of invoice name, should I issue a “Tax Invoice” or just a regular “Invoice”?

  • If the company does not meet the threshold and does not have TRN number, in the amount section, we should
    Retail Price
    Discount
    Net Price = Retail – discount.

    Do we show VAT as 0% or do not show it at all

    • Hi Ankur,

      If the company does not have TRN then there is no concern with the VAT and you do not have to show it on the invoice at all.

      For more information, contact us. Thank you!

  • Hello, can we claim vat paid to stores even their invoice/receipt do not have our company details? Like, we purchase some items for our client and we paid vat, can we claim this?

  • Hello, if we purchased from the baqala but their cash register no TRN or they don’t want to give tax invoice coz they saying they are not register yet , is it allow co’z as I knew this is mandatory? co’z we are purchasing everyday maximum 200-500 dirhams from baqala, how can I include this on our Vat return? or do I need to inform FTA regarding this?

  • I need to Know whats is Different Between Individual name TRN and Company Name TRN.
    Which TRN registeration is good for Real Estate Company because they have register building under Owner name.

  • Hello,

    if we have reached the threshold after of a contract we signed in July – and we started an application to the VAT registration in July, during the process of registration (before the VAT Certificate and VAT number are issued) can we issue non taxable invoices related to the same contract we signed in July?

    • Ofcourse, you will issue a non taxable invoices because your Tax Registration Number is pending. You will issue Tax invoice after getting the TRN from FTA.

  • Hi, we have filed registration for VAT already and was issued TIN. We are in the process of adding it to Tax Group. The amendment is still being reviewed. Should we issue Tax Invoice already?

    • Hi Jam,
      No, you cannot issue a tax invoice based on TIN. You will issue a tax invoice after getting the Tax Registration Number (TRN).

      Thank you.

  • As a supplier when my company issues a TAX invoice is it mandatory as per UAE VAT directive to include customer TRN details also in it or is it enough to show our TRN detail

    Please advise

  • Hi.

    What if our customer does not yet received their new VAT Certificate, but we have completed the services, can we issue a tax invoice to our customer?

  • Hi

    We have started getting invoice from Etisalat for AED 12000 for our monthly expenses from October 2020. During the month of October and November they didn’t mention our TRN No. on the invoice. But they started mentioning from December onwards. in this case we are allowed to claim VAT for the invoices for the month of October and November ?. Please advise

    • Please share your contact details with us and one of our representatives will contact you. Or call # 050 454 8424 / 04 259 4747
      Thanks

  • Hey, some of the petty cash expenses like fuel charges, food bills does not have our TRN no or recipient’s name. How can be treat these expenses, can we claim vat?

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