Verifying the Tax Registration Number to Perform Activities in Dubai

Updated on Friday 23rd February 2018

Companies with operations in the GCC (Gulf Cooperation Council) are subject to VAT since January 2018. In this sense, the Federal Tax Authority imposed the tax registration number (TRN) which is necessary before the activities are conducted in Dubai. If you are a business person from abroad who wants to know information about the new tax regime in the UAE, it is best to ask for support offered by our team of accountants in Dubai. The same team can perform audits in Dubai, regardless of the structure of your company.

Why is the TRN necessary for businesses in Dubai?

Any company registered for tax purposes in Dubai, and particularly for VAT must own a tax registration number and the VAT certificate. Financial authorities in Dubai have the possibility of verifying the businesses with the help of TRN and see if they comply with the new tax law as imposed at the beginning of this year. Also, the official website of FTA allows any person to check the tax status of a firm with the help of TRN. It is good to know that the TRN is issued by the FTA and the local offices at the time a company registered for VAT purposes. In order to respect the new tax law in the UAE, you can ask our Dubai accountants for support in this matter.

Provisional TRNs in Dubai

Even if the VAT registration process was available for companies for more than a year, there were cases in which such firms did not apply in time for such registration. In this situation, the financial authorities provided to such firm provisional tax registration numbers in order to activate on the market. Even though these are provisional numbers, such TRNs are satisfactory for legally managing businesses in Dubai. The VAT certificate will then be issued as soon as a final TRN is available for such firms. The VAT was a surprise for the GCC countries from many points of view, and companies had to align with the requirements in this sense in a fast manner. In case of companies which file wrong VAT applications, the authorities will guide them in correcting these errors.

For a better understanding of the VAT requirements for companies in Dubai, please do not hesitate to contact our accounting firm in Dubai for support and information.