Most countries issue tax registration numbers (TRN) to uniquely identify first and third parties in tax and other declarations. A Tax Registration is typically issued by a tax authority to a party for one or more tax regimes, taxes, or tax jurisdictions.
The Tax Registration Number can have a different name across countries. Companies receive a Value Added Tax (VAT) registration number in Europe and many countries around the globe. In India, companies can have a Goods and Services Tax (GST) Registration Number, a Permanent Account Number (PAN), or Temporary Account Number (TAN).
In the US, a Sales Tax Registration Number is typically issued at the state-level. For example, the Florida Department of Revenue issues the Sales Tax Registration to a party which is used for the state, county, city, and local district taxes in the state of Florida.
In other countries, TRN may be known by different names.
It is important that the First Party TRN setup is complete and correct so that transactions are stamped with the correct TRN and subsequently reflected in tax reporting. In many countries, Third Party TRN are also required to be specified on invoices and in tax reporting.
It is important that the Tax Registration Number (TRN) setup for both First and Third parties is complete and correct, for proper transactions stamping upon creation and subsequent processing and reporting.
In the document published on MOS note 2955360.1 we cover the following aspects of Tax Registration Numbers:
- First-Party and Third-Party Tax Registration Numbers Configuration
- Controls and validations
- Role and impact of TRN in transactions creation and reporting