What is Tax Registration Number (TRN) & Why it is Important in Taxation?
The introduction of the Value Added Tax (VAT) in 2018 has brought fresh changes to the UAE business landscape which has been hitherto known to be a no-tax regime.
As a result, anyone whose business turnover exceeds AED 375,000 is required to mandatorily register for VAT. And those with a turnover above AED 187,500 are allowed to undertake voluntary VAT Registration in the UAE.
The Federal Tax Authority (FTA) issues each registrant a unique number called Tax Registration Number, shortened as TRN. The businesses that are new to the scenario of VAT in the UAE may have understandable confusion regarding the importance of TRN in taxation and the procedures to get it.
This article delves into the key questions such as ‘what is a TRN’ and its significance in the background of VAT in the UAE.