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Faroe Islands TIN number guide

P tal (Faroese P Number)​

A p-tal, where "p" denotes person and "tal" signifies number, is a vital personal identification number used by authorities in the Faroe Islands, particularly in matters such as taxation. Issued by Landsfólkayvirlitið under the oversight of the Faroese Ministry of the Interior, this nine-digit code incorporates the first six digits as the individual's date of birth, with the remaining three being private.

Individuals born in or relocating to the Faroe Islands are allocated a standard p-tal, essential for receiving wages. Additionally, those working in the Faroes for over 180 days annually are considered immigrants and obtain a standard p-tal upon registration at the National Registry. Conversely, for shorter work periods, a temporary p-tal is required, obtained through application to TAKS or by employer application. Ensure timely application for the temporary p-tal, ideally 14 days before wages are due. Once acquired, a temporary p-tal remains in the system, requiring reactivation for subsequent work periods in the Faroes.

Foreigners​

In situations where an individual is not a resident of the Faroe Islands but is deemed taxable by the Faroese Tax Administration—such as in the role of an employee—an Identification number is assigned. The format of this Identification number shares similarities with the P number issued by the National Registration Office, though it's not identical. Both the P number and the Identification number are distinct and permanent, not subject to renewal.

V Tal​

Vinnuskráin serves as TAKS' internal registry for businesses and associations. Upon registration in Vinnuskráin, you receive a V-tal, abbreviated for vinnutal, equivalent to the commonly referred-to VAT number in English. This unique identifier is essential for business and taxation purposes, ensuring seamless recognition and compliance within the system.

Format

6 Digits

Foreign Companies in the Faroe Islands

Foreign companies operating in the Faroe Islands must adhere to specific regulations, contingent on whether they establish a permanent presence in the region. For companies planning an engagement exceeding 12 months, the establishment of a permanent presence is mandatory. To initiate this process, a registration form, accompanied by comprehensive details about the company's Faroese operations, should be submitted to TAKS. Additionally, copies of the company's registration in its home country must be enclosed, and the registration form must bear the signature of the relevant manager or guarantor.

For foreign companies without a permanent establishment in the Faroe Islands, compliance with the VAT Act is crucial. Such companies, not under the jurisdiction of the Faroes and not categorized as Danish state institutions, are required to have a representative in the Faroes. The representative and the foreign company share joint responsibility, necessitating the completion and signing of a registration form. The representative, in turn, must fill out the "Representative in the Faroe Islands on behalf of a foreign company" form, with the option to do so independently if possessing a power of attorney. In such cases, the power of attorney should be included with the submission.

Frequently Asked Questions​

What is the difference between a standard P-tal and a temporary P-tal, and which do I need as a foreign worker?​

A standard P-tal is assigned to individuals born in the Faroe Islands or those working there for more than 180 days per year (considered immigrants). A temporary P-tal is for foreign workers staying less than 180 days annually. The key difference: you need a standard P-tal to receive wages as a resident, while a temporary P-tal allows you to be paid for short-term work. Apply for a temporary P-tal through TAKS at least 14 days before wages are due. Once issued, a temporary P-tal stays in the system permanently — for subsequent work periods, you only need to reactivate it rather than apply for a new one. [1]

Are the Faroe Islands part of the EU VAT system, and can I use a Danish VAT number for Faroese operations?​

No. The Faroe Islands are not part of the EU and are not covered by the EU VAT Directive, despite being a self-governing territory of Denmark. Danish CVR/SE numbers are not valid for business operations in the Faroe Islands. You must register separately with TAKS (Faroese tax authority) and obtain a V-tal (6-digit business number) for any taxable activity. The Faroe Islands have their own VAT system (MOMS) at 25%. Goods shipped between Denmark and the Faroe Islands are treated as imports/exports, subject to customs declarations and duties. [1]

When does a foreign company trigger a permanent establishment in the Faroe Islands, and what registration is required?​

A permanent establishment (fast driftssted) is triggered when a foreign company's engagement in the Faroe Islands is expected to exceed 12 months. Once triggered, you must register with TAKS by submitting a registration form with details about Faroese operations, copies of home-country company registration, and the signature of the relevant manager or guarantor. You will receive a V-tal for tax and VAT purposes. Even without a permanent establishment, if your company sells goods or services subject to the Faroese VAT Act, you must appoint a local representative who shares joint liability for tax obligations. [1]

What are the VAT representative requirements for foreign companies without a permanent establishment in the Faroe Islands?​

Foreign companies without a permanent establishment but with VAT obligations in the Faroe Islands must appoint a Faroese-based representative. The representative and the foreign company share joint responsibility for VAT compliance. Both parties must complete and sign a registration form, and the representative must additionally complete the "Representative in the Faroe Islands on behalf of a foreign company" form. If the representative holds a power of attorney, they can complete both forms independently. Danish state institutions are exempt from this representative requirement. [1]

How do Faroese tax rates and thresholds differ from Denmark's for foreign businesses operating in both jurisdictions?​

Despite political ties to Denmark, the Faroe Islands have a fully independent tax system. The corporate tax rate is 18% (vs. Denmark's 22%). VAT (MOMS) is 25% in both jurisdictions but administered separately — you cannot offset Faroese VAT against Danish VAT or vice versa. The Faroe Islands use their own currency (Faroese króna, pegged 1:1 to the Danish krone). Payroll taxes, social contributions, and personal income tax brackets also differ. Businesses operating in both jurisdictions need separate registrations, separate V-tal/CVR numbers, and must file independently with TAKS and the Danish Skattestyrelsen. [1]

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