IEIM902330 - Tax Identification Number (TIN)

A TIN is a unique number (or combination of letters and numbers) in a specified format issued by a jurisdiction for the purposes of identifying individuals and entities for tax purposes. A TIN can also include a number with an equivalent level of identification (a functional equivalent) such as a social security number, a citizen/personal identification number or code, or a business registration number.

The TIN is often the most useful data item for correctly linking or matching a Seller’s reported information with their details held by a tax authority. The TIN must therefore be issued by the jurisdiction in which the Seller’s primary address is found, and Reporting Platform Operators (RPOs) must collect it from each Seller, unless the country of residence of the Seller does not issue a TIN or does not require a TIN to be collected. 

For an individual Seller resident in the UK, the TIN will normally be the Seller’s National Insurance Number (NINO). The majority of UK resident Sellers will already have a NINO. If a Seller does not have a NINO, but they are working in the UK via a Platform, they will need to obtain a NINO from HMRC. Platforms can direct Sellers to https://www.gov.uk/apply-national-insurance-number so that the Seller can check that they are eligible to apply for a NINO, and then apply for one. The RPO may assist the Seller by providing resources as to where they can find relevant information about obtaining a NINO and encourage Sellers to seek advice from qualified professionals if necessary.

Obtaining a NINO from HMRC may take some time, and it its acceptable for RPOs to register a Seller on the Platform while they wait for the NINO to be obtained. However, RPOs should ensure they have procedures in place to follow up with the Seller to obtain the NINO.

Where the Seller only registers on the Platform towards the end of a Reportable Period and does not have a NINO, it may not be possible for the Seller to obtain the NINO from HMRC by the deadline of 31 December.  Where these exceptional circumstances apply, HMRC will not penalise the RPO for not collecting the NINO, provided it is obtained without undue delay in the following Reportable Period. Again, the RPO should have procedures in place to follow up with the Seller in question to obtain the NINO.

For an Entity Seller resident in the UK, the TIN will normally be the Company Registration Number (CRN). As NINOs in the UK are only issued to individuals, a NINO would not be an acceptable TIN for an Entity Seller.

RPOs should not routinely ask Sellers to provide a Unique Taxpayer Reference (UTR). However, RPOs may collect other reference numbers such as a VAT registration number (VRN) as part of their normal business processes. If an individual or Entity Seller is registered for VAT, the VRN is not an acceptable substitute for a NINO or CRN.

For a Seller who is not resident in the UK, the TIN will be the relevant identifier or other reference number issued by the jurisdiction where the Seller is resident.

In cases where the jurisdiction in which the Seller is resident does not issue a TIN or equivalent reference number (or has not issued a TIN to the Seller), the Seller would not be able to provide a TIN. Some jurisdictions may also not require the collection of a TIN, for example, if the TIN is provided by a taxpayer on a voluntary basis. In these cases, the RPO is not obliged to collect and report a TIN. The RPO should take steps to check whether the jurisdiction in question does issue TINs or equivalent reference numbers. Information on the TINs and reference numbers issued for many different jurisdictions can be found here: https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-numbers/. While this information is specifically directed at collection of information under the Common Reporting Standard (CRS), it may provide useful information to RPOs on the types of reference numbers issued by different jurisdictions.

In all cases, the jurisdiction that issued the TIN must be identified to ensure that the TIN can be used by the relevant tax authority to link the reported details of the Seller with the information held about them.

Where a NINO is provided by the Seller, the UK would be the issuing jurisdiction. Where a TIN is provided which could have been issued to either an individual or an entity, the RPO does not have to determine whether the TIN was in fact issued to an individual or entity, although it will need to know whether the Seller is an individual or an entity to ensure it collects the correct information.

In the rare circumstance where an individual or Entity Seller does not have a TIN and is unable to obtain one, the RPO should collect and report all other information as required under the model rules. They will be able to use ‘NOTIN’ to indicate that a TIN was not collected. The RPO should ensure they have kept evidence of the attempts they have made to obtain the TIN as this may be required for HMRC to understand why it was not possible to obtain a TIN for that particular Seller.

HMRC will provide further guidance on the TIN to be collected where the Seller is a partnership.