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Tax Identification Number (TIN)

A taxpayer identification number (TIN) is a number that is assigned to an individual, business, or other entity in order to identify them for tax purposes. By nature, TINs are designed to be unique, so that no two individuals will have the same number. This distinction makes it possible for TINs to be used to file tax returns, claim tax refunds and benefits, enforce tax compliance, and more. 

In addition to tax purposes, taxpayer identification numbers can also be used for identity verification purposes.

Frequently asked questions

What are the different types of taxpayer identification numbers?

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In the United States, the most common types of TINs typically encountered are Social Security numbers (SSN), Employer Identification numbers (EIN), Individual Taxpayer Identification numbers (ITIN) and Taxpayer Identification number for Pending U.S. Adoptions (ATIN). 

Internationally, most countries issue their own version of taxpayer identification numbers, which can vary in format. For example, individuals in Germany are issued an 11-digit Steueridentifikationsnummer, which serves a similar purpose to the US Social Security number, while in the UK individuals are issued a 10-digit Unique Taxpayer Reference (UTR).

How can you use a TIN in identity verification?

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Because each person or business has its own unique taxpayer identification number, those numbers are often used in the identity verification process. Banks, for example, are required to collect and verify an individual’s social security number when they wish to open an account, in order to combat money laundering and other financial crimes with anti-money laundering (AML) strategies. 

Of course, collecting a TIN does not in and of itself verify a person’s identity. To do that, you will need to first verify that the number is valid and authentic — a process typically involving database verification. You will then need to confirm that the TIN actually belongs to the individual whose identity you are verifying and that it hasn’t been stolen. This can be achieved in a number of ways, and often involves a combination of government ID verification and selfie verification. 

Is a VAT number a TIN?

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No. While VAT numbers and taxpayer identification numbers are both related to taxes, they have different purposes. A VAT number specifically acts as proof that a business or seller has registered to collect and remit value-added taxes (VAT) on the goods or services they sell, if they operate in a jurisdiction that has a VAT system in place. 

Although they are not typically interchangeable, a VAT number can be used for some of the same purposes as a TIN number. VAT validation, for example, can help establish proof that a business is real and legitimate during the Know Your Business (KYB) process.