TaxSavvyAE

Charging VAT before the TRN arrives

I applied for VAT but have no TRN yet. Should I charge VAT on my invoices?

The situation

A tax invoice must show your TRN. Until the TRN is issued you cannot issue a valid tax invoice, but VAT may be due from your effective date.

The law

  • Art 65, Federal Decree-Law 8 of 2017: Registered persons issue tax invoices

What it means for you

Agree with customers that prices are exclusive of VAT and that you will issue tax invoices once the TRN arrives. Example: application filed 1 March, TRN issued 20 March with effective date 1 March. Issue tax invoices for March sales with the TRN after 20 March, within the time allowed, so customers can recover the VAT.

What to do

  1. Quote prices as exclusive of VAT.
  2. Track sales from the expected effective date.
  3. Issue tax invoices once the TRN arrives.
  4. Include those sales in the first return.

We can do this for youVAT registration on EmaraTax: threshold test, voluntary registration, non-residents and tax groups: AED 950

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