Introduction
In Iceland, the Tax Identification Number (TIN) is referred to as the Kennitala. This unique identifier is essential for individuals, businesses, and legal entities to ensure compliance with Icelandic tax regulations. All data presented in this guide is 100% verified from official tax authority websites and trusted government sources, particularly Registers Iceland (Þjóðskrá Íslands), the official body responsible for assigning the Kennitala.
Tax Identification Number Types
In Iceland, the Kennitala is the primary TIN, used for both individuals and entities:
- Individuals: The Kennitala is assigned to every resident of Iceland at birth or upon registration in the national registry.
- Businesses and Legal Entities: Upon registering a business or legal entity with the Icelandic authorities, a unique Kennitala is issued. This serves as the business’s tax identification number as well as its VAT number if applicable.
TIN Format and Structure
The Kennitala consists of 10 digits, structured as follows:
- Digits 1-6: These represent the individual’s date of birth in the format DDMMYY.
- Digits 7-9: This section is a unique identifier assigned to the individual or entity.
- Digit 10: This is a checksum digit, calculated using the modulus 11 algorithm.
For example, a Kennitala may look like this: 120174-3389, where “120174” corresponds to the birthdate (January 12, 1974), and “3389” is the unique identifier.
Issuing Authority and Registration Process
The Registers Iceland (Þjóðskrá Íslands) is responsible for issuing the Kennitala. The official website of Registers Iceland is: https://www.skra.is/english/
Registration Process:
- Eligibility: All residents, including foreign nationals residing in Iceland, are assigned a Kennitala upon registration.
- Required Documents:
- A completed registration form.
- Valid identification (passport or national ID).
- Proof of residence in Iceland.
- Application Submission:
- Individuals: Can register at Registers Iceland’s office or online.
- Businesses: Must register through the Business Register available at www.rsk.is.
- Fees: Generally, there are no fees for individuals, but businesses may incur nominal registration fees.
TIN Verification and Lookup
Individuals and businesses can verify their Kennitala using the official tools provided by Registers Iceland. This verification is critical to ensure that the TIN is accurate and complies with Icelandic tax laws.
Verification Tool: Registers Iceland – ID Numbers
Using the official verification tool ensures accurate tax records and helps prevent errors that could lead to legal or financial complications.
TIN and VAT Number Connection
In Iceland, the Kennitala serves as both the TIN and VAT number for entities registered for VAT. The format remains the same for both tax identification and VAT purposes. This dual usage streamlines the identification process for tax filings and business transactions.
For instance, if a company’s Kennitala is 0101995123456, it would also be used as its VAT identification number.
Importance of Accurate TIN Validation
Ensuring accurate TIN validation is essential for both businesses and individuals:
- Tax Compliance: Verifying the Kennitala helps ensure correct tax filings and adherence to Icelandic tax laws.
- Business Transactions: A valid TIN is necessary for invoicing, signing contracts, and other business activities.
- Avoiding Penalties: Incorrect or invalid TINs may lead to fines, delays, or legal complications.
Accurate validation using official resources, such as the Registers Iceland verification tool, reduces the risk of issues and ensures smooth business operations.