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TRN a must for charging VAT from end users

A tax invoice must include the name, address, and TRN of the registrant making the supply

Gulf News

Dubai

There are some traders who are charging value-added tax (VAT) without showing the Tax Registration Number (TRN) on the receipt.

A tax invoice must include the name, address, and TRN of the registrant making the supply. An invoice must have a sequential tax invoice number or a unique number and date of issue, which enables identification of the tax invoice and the order of the invoice in any sequence.

Dipesh Shah, a Dubai-based chartered accountant, said that customers should not pay VAT unless businesses issue proper Tax Invoices including TRN number. If the business has collected VAT, irrespective of proper Tax Invoice, it shall include it in the Tax Return and pay it to the tax authority.

The law says that the invoice should have a clear description of the goods or services supplied, it should also mention the unit price, the quantity or volume supplied, the rate of tax and the amount payable expressed in UAE dirham should be specified.

A branch of Nellara Restaurant in Sharjah on Monday issued bills without showing the TRN and charging 5 per cent VAT to the total.

When contacted, the spokesperson at Nellara Restaurant said that they have registered for VAT and has got the TRN certificate but the system is not updating due to some refresh issues but from now on it will show in the bill.

“We came to know about the TRN issue today and lot of people are talking different things. The issue is solved now,” he said.

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