In this article, we delve into the intricacies of Tax Identification Numbers (TINs), primarily focusing on those employed for consumption taxes like VAT, GST, Sales tax, and more. Across global jurisdictions, understanding the format and validation of these unique identifiers is crucial, as they provide insight into taxable activities, the nature of transactions, the type of entities involved, and tax remittance procedures.
We look not only into the multifaceted aspects of TINs and the importance of their validation, but we also illustrate the discussion with practical examples from tax number formats from the Americas, Europe, Asia, Africa, and Oceania.
What is a Tax Number?
Also known as a Tax Identification Number (TIN), a Tax Number is a unique identifier issued to taxpayers engaging in taxable activities in a specific country. This number, which can be a combination of letters and numbers, serves as a signal that the taxpayer is officially registered with the relevant tax authority.
Any taxpayer can hold a Tax Number from individuals and businesses to trusts and other legal entities. Furthermore, taxpayers can possess multiple TINs if they conduct taxable activities in more than one jurisdiction - there's no cap on the number of TINs a person or entity can have.
Interestingly, while every VAT/GST/Sales tax number is a type of Tax Number, the reverse isn't necessarily true; not all TINs are VAT/GST/Sales tax numbers. For instance, in Latin America, countries like Argentina, Mexico, and Colombia have a unified tax number that covers all forms of taxation, be it income tax, VAT, gift tax, or inheritance tax. In contrast, European Union countries often differentiate TINs based on the tax type.
To illustrate, in the Netherlands, the BSN (Citizen Service Number) applies to income tax related to employment or general communication with the tax authority. But for VAT purposes, the Dutch use a different tax number, the Btw-identificatienummer.
Editor Note
In the past, the VAT registration numbers for sole traders in the Netherlands were also tied to their individual social security numbers. But, due to the European Union General Data Protection Regulation (GDPR), which safeguards such personal data, a change was made. The Dutch tax authorities issued new VAT registration numbers to sole traders that became effective from January 1, 2020. So if you are having issues validating a Sole Trader’s number on your records that “looks accurate” but is somehow coming up as invalid, it could be a number in the old format (pre-2020).
Why do we need to understand the Tax Numbers formats?
Understanding the format of tax numbers is critical for several reasons. First, it verifies that the holder is an entity registered to pay taxes, rather than a non-taxable end user. In many countries, this distinction determines whether a transaction is classified as B2B or B2C.
Furthermore, it can indicate whether the holder is authorized to transact. Some EU countries have different VAT numbers or formats for domestic and intra-community transactions. The fact that one of these TINs is provided may indicate that your customer can make an intra-community supply or acquisition with you. A local VAT number may not allow you to carry out an intra-community B2B transaction. In contrast, a community VAT number may not allow you to carry out a domestic B2B transaction in the same country that issued the number, such as Croatia.
Moreover, a tax number can reveal the nature of the entity that holds it. Take Spain, where domestic VAT numbers (NIF) for businesses begin with a letter that signifies the type of taxpayer – 'A' for public limited companies, 'B' for limited liability companies, or 'C' for commercial partnerships.
Finally, a TIN can help you comply with your tax remittance. There are some countries, like South Africa, New Zealand, Poland, and South Korea, where the tax number is either part of the payment reference or the account number.
Still, to fully grasp these nuances, validating and cross-checking tax numbers is crucial.
Why should we validate Tax Numbers?
You need to calculate taxes (VAT/GST) when you sell products or services. At that moment, you need to know whether it is a transaction with a business or a consumer transaction. This is because transactions with other businesses (B2B) usually have a different tax treatment than transactions with consumers (B2C). This is especially true for cross-border transactions, but in several countries can also impact domestic tax calculations. The nature of the transaction also often drives whether you must issue a formal tax invoice to your customer and what should be included in that invoice.
To determine whether and how you need to charge your customer's consumption taxes (VAT/GST/Sales tax), you need to corroborate whether you are dealing with a business or a private individual. A critical step is to check ("validate") your client’s Tax Identification Number (TIN).
Indeed, there are many official public databases to validate tax numbers. However, in many, these checks can only be done manually.
One. Tax. Number. At. A. Time.
What if you need to validate 50,000 tax numbers? Or if you need to validate numbers across multiple jurisdictions and not just in Europe (where they at least have VIES)? From a business perspective, manual checking cannot be the answer. (If you would like to know our answer, skip to the last paragraph)
Most Latin American countries have a similar approach: a single tax number for all purposes. This is the case, for example, in Argentina, Chile, Colombia, and Mexico.
However, other American countries have many tax numbers due to their large size and federal tax system.
The sales and use tax is levied at the state level in the United States. As a result, there are many different tax number formats as the individual states issue them. In this case, we share the format of the TIN, which is not related to a sales tax, but is used at the federal level.
On the other hand, indirect taxes in countries like Canada and Brazil may be collected at different levels - at the state or federal level, or harmonized, each with different TINs (GST/HST, QST, PST). In this scenario, we consider the federal TIN for simplicity.
Argentina
Argentina Tax Number Format
Argentinian TIN Name
CUIT (Unique Tax Identification Code - Clave Única de Identificación Tributaria)
Format
This number is made up of 2 identification digits - 8 digits - and a validation digit (##-12345678-X)
Businesses
The 2 identification numbers are as follows 30 companies 33 or 34 can be used for subsidiary purposes. The next 8 digits are randomly assigned. The last validation digit is calculated using the modulo 11 algorithm
Individuals
The 2 identification numbers are as follows: 20 men 27 women 23, 24, 25, or 26 can be used for subsidiary purposes for both men and women. The next eight digits make up the individual tax number. The last validation digit is calculated using the modulo 11 algorithm
Businesses: CNPJ (National Registry of Legal Entities - Cadastro Nacional da Pessoa Jurídica). Individuals: CPF (Individuals Registry - Cadastro de Pessoas Físicas).
Format
Businesses: 14 digits. Individuals: 11 digits.
Businesses
With a format as follows xx.xxx.xxx/xxxx-xx. The first eight digits identify the legal person, the four digits after the slash identify the branch or subsidiary, and the last two digits result from an arithmetic operation on the previous digits.
Individuals
With a format as follows xxx.xxx.xxx-xx The two last digits are the result of an arithmetic operation on the nine previous digits.
Businesses: GST/HST (Goods and Services Tax /Harmonized Sales Tax) Program Account Number. Individuals: SIN (Social Insurance Number).
Format
Businesses: It is a combination of a business number and Canada Revenue Agency (CRA) Program Account number. Individuals: This number is a unique 9-digit number.
Businesses
A Business Number is a unique 9-digit number. Canada Revenue Agency (CRA) program account numbers are two letters and four digits. i.e., 123456789 RC 0001
RFC (Federal Taxpayers Register - Registro Federal de Contribuyentes)
Format
Businesses: 12 digits. Individuals: 13 digits.
Businesses
With a format as follows xxx-yyyyyy-zzz (x = letters, y = numbers, z = alphanumeric) xxx = firsts three letters of the company name yy = last 2 numbers of the year of incorporation yy = 2 numbers of the month of incorporation yy = 2 numbers of the day of incorporation zzz = alphanumeric digits randomly assigned
Individuals
With a format as follows xxxx-yyyyyy-zzz (x = letters, y = numbers, z = alphanumeric). x = first letter of the first surname x = first vowel of the first surname x = first letter of the second surname x = first letter of the first name yy = last 2 numbers of the year of birth yy = 2 numbers of the month of birth yy = 2 numbers of the day of birth zzz = alphanumeric digits randomly assigned
In the countries of the European Union, some Member States’ tax numbers have a specific format for domestic purposes and another for intra-community transactions. This is one of the reasons why the VIES (VAT Information Exchange System) database is insufficient to validate all of your customer's tax numbers. VIES only aims to cover VAT numbers activated for intra-community transactions. Therefore, in the table below, we analyze both intra-community and domestic VAT numbers.
On top of that distinction, Germany has a particular approach to tax identification numbers. It has two different ones for both companies and individuals for domestic purposes. However, the TINs for companies are provided by the various federal states, and their format varies between them. In addition, Germany has a special TIN for taxpayers who carry out intra-community transactions: Umsatzsteuer-Identifikationsnummer.
France has a similar approach. This country has one TIN for intra-community transactions and another for domestic purposes. However, in this country, the domestic TIN is released centrally and has a unique format that is the same for both companies and individuals.
Another country with a particular approach is Croatia. In this country, a taxpayer can have a VAT number valid for intra-community transactions but not for domestic ones. That is the case of the exempted businesses that are not required to register locally, but they may have a VAT number for intra-communitarian purposes.
The latest country to release an update on its VAT is Cyprus. In March 2023, this country decided to set a new format of a 9-digit code for new VAT registration. The first 8 digits must be numbers, from which the first digit shall be a 6, and the ninth digit shall be a latin letter that works as an alphabetic control character.
Austria
Austria Tax Number Format
TIN Local Name
UID (VAT number - Umsatzsteuer-Identifikations-nummer)
Intra-community: it starts with the letters BE plus the domestic code Domestic: 10 numerals. The first one is always a 0, but once it runs out of numbers, it will start with 1 and so on. The last 2 digits constitute a control number.
Individuals
Intra-community: it starts with the letters BE plus the domestic code. Domestic: 11 numerals.
Intra-community: it starts with the letters CY plus the domestic code Domestic: 9 characters. The first 8 digits are numbers, from which the first digit shall be a 6. The last digit is a Latin letter that works as an alphabetic control character
Individuals
Intra-community: it starts with the letters CY plus the domestic code Domestic: 9 characters. The first 8 digits are numbers, from which the first digit shall be a 6. The last digit is a Latin letter that works as an alphabetic control character
Czechia
Czechia Tax Number Format
TIN Local Name
DIČ (Tax Identification Number - daňové identifikační číslo)
Intra-community: it starts with the letters CZ plus the domestic code. Domestic: 8 numerals that usually are the IČO (Registration number - Identifikační číslo).
Individuals
Intra-community: it starts with the letters CZ plus the domestic code. Domestic: 10 numerals that usually are the birth number identification.
Business: CVR (Det Centrale Virksomheds-register - Danish Central Business Register). Individuals: CPR (Det Centrale Personregister - Personal Identification number).
Intra-community: it starts with the letters FI plus the domestic code. Domestic: 8 numerals with the following format
Individuals
Intra-community: it starts with the letters FI plus the domestic code. Domestic: 11 characters with the following format xxxxxxyxxxz x=numbers y=+ sign, - sign, or the letter A z=a letter or a number
France
France Tax Number Format
TIN Local Name
Intra-community: Numéro de TVA intra-communautaire (intra-community VAT number) Domestic: SIREN (Business Directory Identification System - Système d'identification du répertoire des entreprises)
Intra-community: it starts with the letter FR followed by 2 check characters that can be either letters or number and the 9 SIREN digits. Domestic: 9 numerals from which the last digit is a check one
Individuals
Intra-community: it starts with the letter FR followed by 2 check characters that can be either letters or number and the 9 SIREN digits. Domestic: 9 numerals from which the last digit is a check one
Intra-community: DExxxxxxxxx. It always starts with the letters DE plus 9 numerical digits. Domestic: It is structured differently per federal state. Usually, it starts with 2 letters followed by 8 or 9 numerals.
Individuals
Intra-community: DExxxxxxxxx. It always starts with the letters DE plus 9 numerical digits. Domestic: 11 numerals.
Intra-community: it starts with the letters IT plus the domestic number Domestic: it has this format: xxxxxxxyyyz x=serial number in the registry of the province where the competent revenue agency office is located y=identification number of the province where the competent revenue agency is located z=check digit.
Individuals
Intra-community: it starts with the letters IT plus the domestic number Domestic: it has this format: xxxxxxxyyyz x=serial number in the registry of the province where the competent revenue agency office is located y=identification number of the province where the competent revenue agency is located z=check digit.
Intra-community: it starts with the letters NL plus the domestic code. Domestic: 9 numerals plus the letter B and two numerals.
Individuals
Intra-community: it starts with the letters NL plus the domestic code. Domestic: 9 numerals that belong to the citizen service number plus the letter B and two numerals.
Business: NIPC (Corporate Identification Number - Número de Identificação de Pessoa Colectiva) Individuals: NIF (Tax Identification Number - Número de Identificação Fiscal)
Intra-community: it starts with the letters ES plus the domestic number Domestic: it has this format xyyyyyyyz x=a letter that indicates the legal form which can be: A Public limited companies B Limited liability companies C Commercial partnerships D Limited partnerships E Unincorporated firms and other entities without legal personality not specifically covered by other codes F Cooperative societies G Associations H Residents' associations under the horizontal property regime J Civil associations N Foreign entities without a permanent establishment P Local companies Q Public institutions R Religious communities and institutions S State Administration and Autonomous Community Institutions U Temporary consortia and joint ventures V Other types not defined in the other codes W Permanent establishments of entities not resident on Spanish territory y=7 randomly assigned numbers z=check number.
Individuals
Intra-community: it starts with the letters IT plus the domestic number Domestic: it consists of 9 numerals of the individual’s ID. If it is a foreign resident, the first character is a letter rather than a number. It is L if it is a Spanish person living abroad, or M if it is not.
Intra-community: it starts with the letters SE plus the domestic code. Domestic: 12 numerals. With a format as it follows Organization Number + 01.
Individuals
Intra-community: it starts with the letters SE plus the domestic code. Domestic: 10 numerals. With a format as follows 6-digit date of birth (the day is increased by 60) + 3-digit birth number + 1 check digit.
With a format as follows GBxxxxxxxxx. It always starts with the letters GB plus 9 numerical digits. However, if the entity is resident in Nothern Ireland, it starts with the letters XI.
In this continent, there has been a significant update about Tax Identification Number formats. On July 8, 2022, the Indonesian Ministry of Finance introduced a new TIN (NPWP) format, which will be fully mandatory by January 1, 2024. The new NPWP format will have 16 digits instead of 15 and will affect companies and non-resident individuals. The reform aims to align the NPWP format of these taxpayers with the NPWP format of Indonesian individuals whose TIN is equal to their NIK (Residency Identification Number), which consists of 16 digits. For those taxpayers who already have a 15-digit NPWP, the tax authority will issue them (upon request or ex officio) a new 16-digit TIN by adding the number 0 as the first character.
China Tax Number Format
TIN Local Name
Businesses: USCC (Uniform Social Credit Code) Individuals: National ID number
Format
18-digit code
Businesses
There are 18 numerals with sometimes letters appearing in the last 10 characters, especially the 9th, 10th, 13rd and 18th
Individuals
There are 18 numerals or 17 numerals followed by the letter “x”
India Tax Number Format
TIN Local Name
GSTIN (Goods and Services Tax Identification Number)
Format
15-digit code
Businesses
With a format as follows xxywwwyxxxxyvzv x=numbers y=letters w=3 letters that can be A, B, C, F, G, H, L, J, P, T, or K v=letter or number z=Z
Individuals
With a format as follows xxywwwyxxxxyvzv x=numbers y=letters w=3 letters that can be A, B, C, F, G, H, L, J, P, T, or K v=letter or number z=Z
Indonesia Tax Number Format
TIN Local Name
NPWP (Tax Identification Number - Nomor Pokok Wajib Pajak)
Format
16-digit number
Businesses
123456789123456
Individuals
It is the NIK number (Residential Identity Number - Nomor Induk Kependudukan.) With a format as it follows xxvvzz-ddmmyy-tttt x=province code v=district code within the province z=kecamatan code within the city d=day of birth m=month of birth y=year of birth t=unique serial number
Israel Tax Number Format
TIN Local Name
VAT Code
Format
9-digit number
Businesses
123456789
Individuals
National ID number i.e., 123456789
Japan Tax Number Format
TIN Local Name
Businesses: Corporate Number. Individuals: My Number
Nombor Pengenalan Cukai (Tax Identification Number)
Format
8 or 10 digits code
Businesses
Depending on the type of business, it starts with: C=Companies CS=Cooperative Societies D=Partnerships E=Employers F=Associations FA=Non-Resident Public Entertainers J=Hindu Joint Families LE=Labuan Entities PT=Limited Liability Partnerships TA=Trust Bodies TC=Unit Trusts/ Property Trusts TN=Business Trusts TR=Real Estate Investment Trusts/ Property Trust Funds TP=Deceased Person’s Estate Followed by numbers where the last digit is a 0
Individuals
It always starts with the letters IG followed by numbers
Philippines Tax Number Format
TIN Local Name
TIN
Format
12-digit number
Businesses
With a format as follows xxxxxxxxxxxx
Individuals
With a format as follows xxxxxxxxxxxx
Saudi Arabia Tax Number Format
TIN Local Name
الرقم الضريبي (VAT Account number)
Format
15-digit number
Businesses
With a format as follows xxxxxxxxxxxxxxx. It only starts with 3 which indicates Saudi Arabia as country member of the GCC Then, 8 serial digit numbers, a check digit number, 3 digit numbers that indicates subsidiary or branch, and the last 2 digit numbers indicate the tax type.
Individuals
With a format as follows xxxxxxxxxxxxxxx. It only starts with 3 which indicates Saudi Arabia as country member of the GCC Then, 8 serial digit numbers, a check digit number, 3 digit numbers that indicates subsidiary or branch, and the last 2 digit numbers indicate the tax type.
With a format as follows xxxxxxxxy, x=numbers y=check letter.
Individuals
With a format as follows xyyyyyyyz, x=a letter that can be: S (Singapore citizens and permanent residents born before the year 2000), T (Singapore citizens and permanent residents born in and after 2000), F (Foreigners holding employment or student passes issued before 2000), G (Foreigners holding employment or student passes issued in and after 2000), M (Foreigners holding employment or student passes issued in and after 2022) y=7-digit serial number z=check digit letter
South Korea Tax Number Format
TIN Local Name
Business Registration Number
Format
10-digit code
Businesses
With a format as follows xxx-yy-zzzza xxx=three digit number between 101 and 999 yy=2 numbers that distinguish between: 89: non-corporate religious organization 81, 86, 87, 88: head office of a for-profit corporation 82: head or branch office of a nonprofit corporation 83: country, local government or local government association 84: head, branch or liaison office of a foreign corporation 85: branch office of a for-profit corporation zzzz=four digit number between 0001-9999 a=check digit
Individuals
With a format as follows xxx-yy-zzzza xxx=three digit number between 101 and 999 yy=2 numbers that distinguish between: 01-79: sole proprietor liable for VAT 90-99: sole proprietor exempted from VAT zzzz=four digit number between 0001-9999 a=check digit.
Taiwan Tax Number Format
TIN Local Name
Businesses: BAN (Business Administration Number) Individuals: National ID number
Digits can be any number between 0 and 9. If the company name starts with A, the first digit is 0; if it starts with B, it is 1; if it starts with Y or Z, it is 9, hence forth
Individuals
It is the National ID number
United Arab Emirates Tax Number Format
TIN Local Name
TRN (Tax Registration Number)
Format
15-digit number
Businesses
123456789123456
Individuals
123456789123456
Vietnam Tax Number Format
TIN Local Name
Mã Sṍ Thuḗ (Personal Tax Code)
Format
10-digit number
Businesses
With a format as follows xxxxxxxxxx
Individuals
With a format as follows xxxxxxxxxx
Example Tax Number Formats from Africa
South Africa illustrates a case in which the TIN is used for tax remittance. Their SARS number should be used as part of the payment reference section to allow the tax authority to allocate the payment.
Egypt Tax Number Format
TIN Local Name
TIN
Format
9-digit number
Businesses
With a format as follows xxx-xxx-xxx
Individuals
With a format as follows xxx-xxx-xxx
Ghana Tax Number Format
TIN Local Name
TIN
Format
10-digit code
Businesses
With a format as follows xxxyxxxxxx, x=numbers y=capitalized letter.
Individuals
With a format as follows xxxyxxxxxx, x=numbers y=capitalized letter.
Kenya Tax Number Format
TIN Local Name
PIN (Personal Identification Number)
Format
8-digit code
Businesses
With a format as follows xxxxxxxy, x=numbers y=alphanumeric.
Individuals
With a format as follows xxxxxxxy, x=numbers y=alphanumeric.
Morocco Tax Number Format
TIN Local Name
IF (Tax Identification - Identifiant Fiscal)
Format
8-digit number
Businesses
With a format as follows xxxxxxxx
Individuals
With a format as follows xxxxxxxx
South Africa Tax Number Format
TIN Local Name
SARSN (South Africa Revenue Service Number)
Format
10-digit number
Businesses
With a format as follows xxxxxxxxxx. It can only start with the digits 0, 1, 2, 3, or 9.
Individuals
With a format as follows xxxxxxxxxx. It can only start with the digits 0, 1, 2, 3, or 9.
Example Tax Number Formats from Oceania
Coming to Oceania, Australia is another example of different types of tax identification. While the TFN (Tax File Number) is used with respect to Income tax, the ABN (Australian Business Number) is employed regarding the GST.
On the other hand, New Zealand is one more example of a TIN tied with tax remittance. The IRD number is part of the bank account number where the payable GST amount should be transferred.
Australia Tax Number Format
TIN Local Name
ABN (Australian Business Number)
Format
11-digit number
Businesses
With a format as follows xx xxx xxx xxx. The first 2 digits will be derived from the subsequent 9 digits using a modulus 89 check digit calculation.
Individuals
With a format as follows xx xxx xxx xxx. The first 2 digits will be derived from the subsequent 9 digits using a modulus 89 check digit calculation.
New Zealand Tax Number Format
TIN Local Name
IRDN (Inland Revenue Department Number)
Format
9-digit number (some old IRDN consists of 8-digit number)
Businesses
With a format as follows xxxxxxxxx A (7 or) 8-digit base number plus a trailing check digit
Individuals
With a format as follows xxxxxxxxx A (7 or) 8-digit base number plus a trailing check digit
Conclusion
In essence, understanding the format and validation of Tax Identification Numbers (TINs) is fundamental to efficient tax administration and compliance, whether for individuals, businesses, or other legal entities. Across the globe, the structure, use, and validation procedures for TINs vary, reflecting the diverse tax systems and legal frameworks of different jurisdictions.
By familiarizing ourselves with local nuances and variations within domestic systems, we can ensure more accurate and efficient handling of taxable activities. The future may see further changes and adaptations in TINs, reinforcing the importance of continuous learning and monitoring of this ever-evolving field.
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