A Handbook to Getting a Tax Identification Number in the UAE

The UAE's tax framework has changed considerably with the introduction of VAT in 2018. One of the compliance requirements an entrepreneur must meet is obtaining a TIN (Tax Identification Number in the UAE. Whether you are starting an offshore company in the UAE or any other country, obtaining a TIN is essential. TIN allows you to tap into the economy seamlessly. This handbook is your guide to understanding the importance of the TIN in the UAE and how to get it.

What is the Tax Registration Number in the UAE?

The Tax Identification Number (TIN) is a 15-digit code given by the Federal Tax Authority (FTA) when an individual or a company registers for VAT. It is primarily related to value-added tax (VAT) and helps with tax compliance. It is sometimes referred to as a Tax Registration Number or TRN and is often used interchangeably with TIN. Sometimes, it is also known as the VAT identification number in other countries.

Who Needs a TIN Number in the UAE?

Anyone can register for a TRN number in the UAE. However, there are two types of registration: mandatory and voluntary. For companies crossing the revenue threshold of AED 375,000, it is compulsory to register. At the same time, all the other companies or individuals can voluntarily register, regardless of their revenues.

Benefits of TIN Number in the UAE

There are various advantages of having a tax identification number in the UAE. Let’s take a look at why individuals and companies need to have a UAE TIN.

• Authority to Charge VAT

A company can only charge VAT if it has a valid TIN in the UAE registered with the Federal Tax Authority. Without this, they are not legally eligible to charge VAT from customers. The laws also mandate the inclusion of the tax identification number in all tax invoices.

• Compliance with Tax Regulations

UAE introduced VAT in 2018. Since then, it has become mandatory for companies crossing a certain revenue threshold to register and obtain their tax identification number in the UAE.

• Transparency with Authorities

A TRN number in the UAE is easily traceable and ensures transparency with the transactions. Also, it helps keep financial records transparent and reduces the chances of fraud.

• Builds Trust

When a company has a valid tax registration number in the UAE, it often implies that the tax being charged is valid and not illegal. It helps build trust with customers and suppliers to showcase that the company is compliant with the law and maintains tax records.

• Mandatory for VAT Filing

A TRN number in the UAE is essential while filing VAT returns. There can be penalties if the company is eligible and not filing. Also, if a company fails to register for TIN, they can incur severe penalties.

Steps to Getting a Tax Identification Number in the UAE

1. Sign Up on EmaraTax

EmaraTax is the official UAE government website for registering for VAT and obtaining the TIN. You can commence the form after signing up on the website.

2. Opt for VAT Registration

Once you have signed up on the website, opt for VAT registration.

3. Fill Up the Form

The form has many sections. You must fill out all the sections diligently and accurately. Any mistake can lead to rejection. The form will require details such as entity-related information, eligibility criteria, bank details, authorized signatory details, contact details, date of incorporation, and trade license details.

4. Save your Progress

You will be logged out of the website automatically after a specific duration. To avoid rework, you should keep saving the progress as you fill out the form.

5. Submit the Documents

There are various documents that you must prepare before the submission of your application. Here’s the list of documents you need to keep handy:

• A valid trade license
• Articles of Association
• Certificate of Incorporation
• Bank letter validating bank account details
• A copy of financial statements
• Passport of the authorized signatory
• Proof of authorization
• Contact Details

6. Review and Submit the Application

Once you have finished filling out the form, you can review all the details for accuracy and apply.

7. Check for Progress

The approval of the application takes time. You can check the status of your application from the website’s dashboard, and it can be any of the following: drafted, pending, issued, suspended, rejected, approved. In certain cases, you may be required to resubmit the application.

8. Get the TIN

Once your VAT registration is approved, you will get your VAT registration certificate with your unique number. The tax registration number in the UAE is crucial for issuing VAT invoices, claiming refunds, and interacting with the FTA.

It is clear from the guide that getting a UAE TIN for individuals and companies is essential. There are various benefits to it, and one can easily register for it online. If you are considering offshore company formation in UAE, then getting a TIN is critical for absolute legal compliance.

You may also need supporting tax documents such as a Tax Residency Certificate in the UAE, depending on your business structure.

Why Business Setup Worldwide (BSW)

We have described the process of applying for a TIN by your lonesome. The process can be overwhelming at times. Not to mention, the paperwork alone can be challenging, which is where Business Setup Worldwide steps in. We have been helping entrepreneurs and business owners with their needs for over 8 years.

Our list of 7,000+ happy customers is proof of our commitment to delivering quality and customized service every day. So, don’t wait any longer! Contact us now to get started!