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What is an IČO and TIN: how to get them and where to find them?
In business, IČO and DIČ are perhaps the most commonly used abbreviations. If you are setting up a business or establishing a trade, you are bound to come across these terms. That's why you need to know how these two identifiers differ, who assigns them to you, and where you can look up the ID numbers and TINs of other companies or sole proprietorships.
What you will learn in this article:
What is an ID number and VAT number
- The identification number (IDN) refers to a unique eight-digit code used to identify legal entities, natural persons engaged in business or organisational units of the state. Each entity can have only one ID number. It is typically acquired after the establishment of a company or trade.
- TIN = tax identification number used to identify the tax entity. It consists of a country code and eight to ten digits (e.g. CZ27767680). Every legal and natural person who is a taxpayer has it (any tax, including income tax, not only VAT).
What is the purpose of the ID number and VAT number?
What is the difference between an IČO and a TIN and when are these two identification numbers used? They are particularly important for accounting, taxes and identification when dealing with the authorities.
Identification number (ID number):
- Used to identify an entity (legal person, natural person, organisational unit of the state),
- both buyer and supplier (except for freelancers) must indicate it on each invoice.
Tax identification number (TIN):
- plays an important role in the payment of taxes,
- It is primarily used to communicate with the tax office,
- The VAT payer must indicate it on all documents,
- non-VAT payers must and should only quote their TIN in their dealings with the tax office,
- anyone working with a document bearing the VAT number must check whether the issuer is a VAT payer and book the document accordingly.
When communicating with foreign entities, you may see the abbreviation VAT or VAT number (in EU countries) and TIN (Tax Identification Number, used for example in the USA) instead of the abbreviation TIN. If your business partner asks you for one of these numbers and you are unsure what it is, they are usually interested in your Czech TIN.
A TIN does not mean that you are a VAT payer. The tax office assigns you a TIN as soon as you set up a business or trade, but you only become a VAT payer when you exceed a certain amount of turnover. You can read more in the article about VAT payership. The VAT number usually consists of the abbreviation CZ + company number, CZ + birth number of the self-employed person.
How to get an ID number and VAT number
Company
The registration number is assigned by the registration court after the company is formed. The VAT number is issued by the tax office after registration for corporate income tax. For a Czech legal entity, the tax identifier is usually the abbreviation CZ + IČO.
SELF-EMPLOYED
Self-employed persons obtain an identification number from the Trade Licensing Office when registering a trade or issuing a concession. So-called freelancers (e.g. tax consultants or interpreters) are issued an ID number by the Czech Statistical Office. A self-employed person obtains a TIN after registering for tax at the tax office and it usually consists of the abbreviation CZ + birth number.
Where to find a VAT number and VAT number
Company
You can find the company's ID number in the ARES company register or in the commercial register, for example. And how is the VAT number verified? This is also in ARES and can be accessed via the "VAT" field of the specific company. You can also search for VAT taxpayers in the register of taxpayers according to their identification number.
SELF-EMPLOYED
You can find the identification number of self-employed persons in the Trade Register, where you can search for specific persons by name. You can find the VAT number of the individual paying VAT in the same way as for a company - if the self-employed person is a VAT payer, ARES will display this information. Checking the VAT number of a non-taxpayer is more complicated - you will not find it in the register, but it is usually the individual's birth number.
TIP: Do you trade as a VAT payer with foreign countries? Use the VIES system to check whether your counterparty is an active VAT payer within the EU. The online tool VIES - VAT is operated by the European Commission and contains all entities with a valid VAT registration.
Setting up a business or trade? We can advise you
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