Tax Identification Numbers (TINs) are essential for individuals and legal entities to comply with tax regulations in the Faroe Islands. These unique identifiers facilitate interactions with tax authorities, ensure accurate tax filings, and are integral to various administrative processes. All information provided herein is verified from official sources, including the Faroese Tax Administration (TAKS) and the OECD.
Tax Identification Number Types
Individuals
- P-tal (P Number): Assigned to residents of the Faroe Islands, the P-tal is used for taxation and other official purposes.
- Identification Number: Issued to non-residents who are taxable in the Faroe Islands, such as foreign employees.
Legal Entities
- V-tal (V Number): Assigned to businesses and legal entities upon registration with TAKS.
TIN Format and Structure
P-tal (Individuals)
- Format: 9 digits, typically in the format DDMMYY-XXX.
- Structure:
- First 6 digits: Date of birth (day, month, year).
- Last 3 digits: Unique identifier.
Identification Number (Non-resident Individuals)
- Format: Similar to the P-tal but with variations to distinguish non-residents.
V-tal (Legal Entities)
- Format: 6-digit number.
- Structure: Sequentially assigned unique identifier.
Issuing Authority and Registration Process
Issuing Authority
- Individuals: National Registration Office (Landsfólkayvirlitið).
- Legal Entities: Faroese Tax Administration (TAKS).
Registration Process
Individuals
- Residents:
- Automatic issuance of P-tal upon birth or residency registration.
- Non-residents:
- Apply for an Identification Number through TAKS.
Legal Entities
- Register with Skráseting Føroya (Company Registration).
- Submit required documents to TAKS:
- Registration form.
- Operating budget.
- Partnership agreement (if applicable).
- TAKS assigns a V-tal upon successful registration.
TIN Verification and Lookup
Currently, there is no official online portal provided by TAKS for public TIN verification. For verification purposes, individuals and entities should contact TAKS directly.
TIN and VAT Number Connection
In the Faroe Islands, the V-tal serves as the Tax Identification Number and the VAT number for businesses. This dual-purpose identifier simplifies tax and VAT reporting processes.
Importance of Accurate TIN Validation
Ensuring the accuracy of TINs is crucial for compliance with tax laws. Incorrect TINs can lead to issues such as delayed tax filings, penalties, and complications in business transactions. Accurate TIN validation is essential for smooth operations and adherence to legal requirements.