Value Added Tax Registration Number (VAT Registration Number or VRN)
In the United Arab Emirates (UAE) VAT system, individuals or businesses with a turnover exceeding AED 375,000 are obligated to undergo mandatory registration, while those with a turnover surpassing AED 187,500 have the option to apply for voluntary registration. Following registration, a unique identifier known as the Tax Registration Number (TRN) is issued by the competent authority. This identifier is commonly referred to as TRN for brevity.
In essence, a tax registration number is synonymous with your VAT Number or VAT Registration Number and serves as the means by which authorities identify you.
Individuals or entities that have been granted a VAT registration number are designated as ‘Registrants.’ In accordance with UAE VAT regulations, it is expected that VAT numbers will consist of 15 digits. Registrants are required to include their VAT Registration Number in various documents, such as VAT returns, Tax Invoices, Tax Credit Notes, and all other documents as stipulated by UAE VAT LAW and Executive Regulations.
To provide further clarity on VAT registration numbers and their application, we have compiled a concise list of FAQs:
1. **How can I obtain a VAT Registration Number?**
After initiating the VAT registration process and successfully completing the verification, you will be issued a VAT registration number.
2. **Who is responsible for issuing the VAT Registration Number?**
The VAT number will be issued by the Federal Tax Authority of the UAE upon the successful verification of your registration application.
3. **How many digits are included in a VAT Registration Number?**
It is anticipated that a VAT Registration Number will comprise 15 digits.
4. **If a taxable person wishes to join a tax group, will a VAT Number be provided to them?**
Yes, if a taxable person is already registered with the FTA, they will possess a VAT registration number, which they can use to join a tax group. If not, they must submit the VAT registration form, and upon submission, a Tax Identification Number (TIN) will be issued. It is important to note that a TIN is distinct from a valid TRN; it is solely intended for tax identification purposes.
5. **Is it mandatory for registrants to include the VAT Number in VAT returns?**
Absolutely, it is mandatory for registrants to include their VAT numbers in all of their returns. The VAT number is the primary means by which the authority identifies the taxable entity.
6. **In which documents is the registrant required to include the VAT Number?**
Registrants are obligated to include the VAT number in the following documents:
– VAT Return
– Tax Invoice
– Tax Credit Note
– All other documents as specified by UAE VAT regulations
You can also register for VAT Registration in our website:
www.vat-registration-uae.com