Skip to main content

Faroe Islands TIN — P-tal and V-tal guide

P-tal (Faroese Personal Number)​

A p-tal — where "p" stands for person and "tal" means number in Faroese — is the primary personal identification number used by authorities in the Faroe Islands, especially for taxation, payroll, and social security. It is issued by Landsfólkayvirlitið (the National Registration Office) under the oversight of the Faroese Ministry of the Interior.

P-tal Format​

The p-tal is a nine-digit code. The first six digits encode the holder's date of birth in DDMMYY order; the final three digits are a private sequence assigned at registration. Example structure: DDMMYY-XXX.

  • Permanent residents and persons born in the Faroe Islands receive a standard p-tal automatically via municipal registration.
  • Foreign workers staying more than 180 days in a 12-month period are treated as immigrants and must register at the local municipality to obtain a standard p-tal.
  • Foreign workers staying fewer than 180 days require a temporary p-tal, which must be applied for at least 14 days before the first wage payment. Both the worker and the employer may submit the application to TAKS directly.
  • A temporary p-tal remains on record after it expires; for a subsequent work period in the Faroe Islands the same number must be reactivated rather than re-applied for from scratch.

Foreigners and the Identification Number​

Individuals who are not resident in the Faroe Islands but are taxable under Faroese law — for example, as an employee of a Faroese company — are assigned a separate Identification number by TAKS. This number shares a structural resemblance to the standard p-tal but is not identical to it. Both the standard p-tal and this identification number are permanent and do not require renewal.

V-tal (Faroese Business Number)​

Vinnuskráin is TAKS' internal registry of businesses and associations. Upon successful registration in Vinnuskráin, TAKS assigns a V-tal (vinnutal) — the Faroese equivalent of what is commonly known in English as a VAT number or business tax number.

V-tal Format​

The V-tal is a six-digit numeric code. It appears on all business correspondence, VAT invoices, customs declarations, and official filings.

MVG (Faroese VAT)​

Faroese VAT is called MVG (meirvirðirgjald). The standard rate is 25%, applied to all commercial sales of goods and taxable services at every stage in the Faroese distribution chain. The registration threshold is DKK 50,000 in annual turnover from goods and/or services.

Foreign Companies in the Faroe Islands​

Foreign companies operating in the Faroe Islands face different obligations depending on the length and nature of their presence:

Permanent establishment (engagements exceeding 12 months). The company must establish a formal presence by submitting a registration form to TAKS together with a description of Faroese operations, copies of home-country company registration, and the signature of the responsible manager or guarantor.

No permanent establishment. Companies without a Faroese address that supply goods or MVG-liable services to Faroese customers and exceed the DKK 50,000 annual threshold must:

  1. Register for MVG with TAKS.
  2. Appoint a resident representative in the Faroe Islands who shares joint and several liability for all MVG, interest, and penalties.
  3. Submit the TAKS registration form co-signed by both the foreign company and its representative. If the representative holds a power of attorney, they may complete both sections independently (the power of attorney must be enclosed).

There is no EU One Stop Shop (OSS)-equivalent for the Faroe Islands. The local representative requirement cannot be waived regardless of the company's EU OSS registration status.

Import obligations. Commercial importers must quote their V-tal in all customs declarations. A EUR.1 certificate of origin or invoice declaration is required for goods of EU origin to qualify for preferential duty rates under the EU–Faroe Islands Free Trade Agreement.

Frequently Asked Questions​

Can I verify a Faroese V-tal through EU VIES, or is there an official public lookup?​

No. The Faroe Islands are outside the EU VAT area and have no country code in VIES, so V-tal numbers do not appear in the EU system at all. [1] TAKS does not operate a standalone public V-tal lookup portal comparable to VIES. To verify a Faroese business partner's registration status, contact TAKS directly at [email protected] or check that the six-digit V-tal is printed on the partner's official invoices — MVG-registered businesses are required to display it on all invoices. EU accounting software that auto-validates partner VAT numbers against VIES will flag every Faroese V-tal as "unverified"; this is a system limitation, not a sign that the number is invalid. [2]

Do I pay Faroese MVG on goods I import from Denmark or another EU country?​

Yes — and this catches many first-time importers off guard. Although the EU–Faroe Islands Free Trade Agreement eliminates customs duty on most industrial goods of EU origin, MVG at 25% is still levied at the Faroese border on all goods regardless of origin. [3] The free trade agreement removes the tariff line, but not the MVG charge. Commercial importers must be registered with TAKS, hold a V-tal, and quote it in every customs declaration; TAKS can block clearance if the importer is not MVG-registered. For EU exporters, goods shipped to the Faroe Islands must be treated as an export from the EU and accompanied by a EUR.1 certificate of origin or an invoice declaration to qualify for preferential duty treatment; simply attaching a Danish VAT invoice is not sufficient. [4]

A foreign company exceeds the DKK 50,000 MVG threshold selling to Faroese customers — must it appoint a local representative?​

Yes. Foreign companies with no permanent establishment in the Faroe Islands that supply goods or MVG-liable services exceeding DKK 50,000 per year must register for MVG with TAKS and appoint a resident representative who shares joint and several liability for all MVG owed, including penalties. [5] There is no OSS-style remote registration pathway: the representative requirement is mandatory and cannot be waived. The representative and the foreign company must co-sign the TAKS registration form; if the representative holds a power of attorney they may complete both sections, enclosing the power of attorney with the submission. MVG returns are filed quarterly through the Vinnugluggin online portal. [6]

How does the 180-day rule determine whether a foreign worker owes full or limited Faroese income tax?​

Workers present in the Faroe Islands for 180 days or fewer in any 12-month period are subject to limited tax liability: a flat 42% is withheld at source on gross A-income (employment income), with no personal allowance, no child tax credit, and no interest subsidy. [7] A labour market contribution of 3% applies on top of the 42%. The employer withholds the full amount before payment, so contractors often receive less than expected on their first invoice. If cumulative presence crosses 180 days within the same 12-month window, full tax liability applies retrospectively for that period. The Nordic multilateral tax convention prevents double taxation between the Faroe Islands and other Nordic countries but does not reduce the 42% limited-liability rate. [8]

Does a foreign digital-service or SaaS seller need to register for Faroese MVG, and can it use the EU OSS scheme?​

The EU OSS scheme does not extend to the Faroe Islands, which are outside the EU VAT area. [9] A foreign SaaS or digital-content company supplying services to Faroese customers must assess MVG obligations independently under Faroese law. Once annual supplies to Faroese customers exceed DKK 50,000, the seller must register with TAKS, appoint a resident representative, and file quarterly MVG returns via the Vinnugluggin portal. Sellers who rely on their EU VAT or OSS registration to cover Faroese customers are unregistered for Faroese purposes and face back-MVG plus interest; there is no published ruling exempting purely digital supplies from the local representative requirement. [10]

My employer applied for my temporary P-tal but I still cannot receive wages — what went wrong?​

The most common cause is insufficient lead time. TAKS requires the temporary p-tal application to be submitted at least 14 days before the first wage payment date; applications received later leave no time for processing, and wages cannot legally be paid without the number on record. [11] A second frequent issue affects returning workers: if you previously held a temporary p-tal, the number remains on file but is deactivated. You do not need a new application — your employer must contact TAKS to reactivate the existing number before wages can be processed. Submit reactivation requests through TAKS in writing. Workers outside Tórshavn can also seek guidance from the local municipality or the Faroese Immigration Office (Útlendingastovan). [12]

How Lookuptax can help you?

Lookuptax VAT validation revolutionizes VAT number validation with its robust platform, empowering businesses to seamlessly verify VAT numbers across over 100 countries. Our cutting-edge technology ensures accurate and efficient validation, reducing errors and enhancing compliance.

LookupTax Signup