Names, addresses, and the like can change; this applies to both natural persons and legal entities. In order for the Swiss state, as well as its foreign counterparts, to reliably assign financial activities and transactions to the correct person, a unique identification feature is required. This feature is referred to as the Tax Identification Number (TIN).
What is the Tax Identification Number (TIN)?
The Tax Identification Number is used for the unique identification of persons within the framework of the International Automatic Exchange of Information (AEOI). Legal entities have company identification numbers (UID), while natural persons resident in Switzerland have tax IDs. The tax ID is simply the OASI insurance number, or social security number. Internationally, tax identification (SIN) is usually referred to as TIN (English: Tax Identification Number).
What is the tax ID?
The tax ID applies to natural persons. Which tax the cantonal tax administration levies depends on the tax return, the submitted supporting documents, investigations carried out (pursuant to Art. 174 StG), and financial activities abroad. It is therefore essential to find a consistent and permanent feature to which all these circumstances can be assigned. Creating hidden reserves can also be beneficial.
What is the tax ID used for?
Whereas in the past an administrative assistance request was required for foreign information, since 2017 the AEOI has made a significant contribution to ensuring that this exchange takes place automatically. Foreign banks provide information on bank accounts and securities accounts to domestic authorities.
The Tax Identification Number (SIN), or Tax Identification Number (TIN), ensures that this information is indeed assigned to the correct taxable person. Unlike a name, the TIN does not change, even in the event of marriage or a name change, and it cannot be issued twice.
The internationally standardized identification number not only promotes correct taxation and simplifies tax matters, but also helps to make cross-border tax evasion more difficult by improving cooperation between different countries.
How is the tax ID structured?
The Tax Identification Number consists of three parts.
- 1-3 – The first three digits represent the country code. Swiss OASI numbers therefore begin with 756.
- 4-12 – This is followed by a nine-digit personal "non-speaking" number.
- 13 – The last digit is a check digit in EAN-13 format.
The tax number is separated by three dots. An example of a Tax Identification Number looks as follows:
756.1234.4567.94
Up to 2008, the OASI number consisted of a total of 11 digits. The new 13-digit concept of the Tax Identification Number (SIN) is intended to contribute to better protection of citizens' data.
Information on the tax ID
Children essentially receive their OASI number, or tax ID, shortly after birth. Children who are born in Switzerland and are resident there receive the insurance number automatically, regardless of their nationality. The tax number can be obtained in various ways, including:
- the employer, provided the person is in an employment relationship.
- the health insurance card / health insurer, provided the person is insured in Switzerland.
- the compensation office, provided the person is currently not employed or self-employed.
What is the UID number?
In contrast to natural persons, companies or legal entities in Switzerland receive a standardized company identification number (UID). The UID number is used for the clear and permanent identification of companies in dealings with authorities. Since 2011, the company identification number has replaced all identification numbers existing in public administration (e.g. VAT number, commercial register number).
How is the UID number assigned?
The UID is issued automatically and free of charge by the FSO (Federal Statistical Office) as soon as a company is entered in a Swiss administrative register that is connected to the UID register. These include, for example, the OASI compensation office, the commercial register, or the VAT register. The term "company" is deliberately defined broadly in the UID register. For example, foundations, associations, and entities under public law are also regarded as companies in a broad sense.
Municipalities and cantons in the public sector also have their own UIDs, as do the federal government, departments, and federal offices.
It is not possible to request a UID number directly from the FSO.
What is the UID number used for?
The UID achieves administrative relief for companies as well as optimization of cooperation between companies and authorities. Companies are in continuous contact with public administrations (e.g. settlement of OASI contributions or VAT, registration in the commercial register).
The Swiss UID number enables identification using a single number. Changes relating to the company (e.g. relocation of registered office, change of name) are recorded by the UID system and automatically forwarded to connected authorities.
The UID register also provides an up-to-date and complete register of core company data. Administrative bodies that have access to it can therefore reconcile and update their data with little effort.
The UID register also offers companies a central point of contact for current company data on customers and business partners.
UID register: contents
The UID register collects the most important company data. These include:
- the company name,
- the registered address,
- the legal form,
- and, where available, entries in the VAT and commercial registers.
This information is publicly accessible. More detailed information, for example relating to the business activity, is only visible to the company itself and to the administration.
How is the UID structured?
The Swiss UID number consists of the country code "CHE" and nine digits. These digits are assigned at random and therefore do not contain any information about the company.
There are two valid ways of writing the UID:
- continuous format: CHE123456789
- format with hyphens and dots: CHE-123.456.789
The latter is often preferred because it is easier to read.
It is possible for the UID to be supplemented at the end. This addition provides information about an entry in the commercial register (HR), a VAT obligation (MWST or VAT, IVA, TVA), or both (HR/MWST). This allows third parties to check whether a company is subject to VAT.
In order for the identification number to remain the same even if the entry or VAT status changes, these additions are not a fixed part of the UID.
Risk of confusion: UID number in Switzerland and in the EU
Caution is required in an international context. In the EU, the abbreviation UID refers to the VAT Identification Number. This is used when goods or services are supplied from one EU country to another European state. The Swiss UID number therefore does not correspond to the UID numbers used in its European neighboring countries.
What is the VAT ID?
The VAT Identification Number (VAT ID) identifies companies for VAT-liable cross-border deliveries and services in the EU. In Switzerland it is also referred to as the VAT Identification Number (MWST-Nr.).
Allocation and structure of the VAT ID
The VAT ID is automatically assigned by the Federal Tax Administration (FTA) when registering for VAT. It starts with "CHE" and nine digits, e.g. CHE-123.456.789 MWST.
Benefits of the VAT ID
The VAT ID simplifies VAT processing in international trade, enables the clear identification of companies, and avoids double taxation.
Differences between tax ID, UID, and VAT ID
- Tax ID: Identifies natural persons for tax purposes within the country (e.g. OASI number in Switzerland).
- UID: Used for the unique identification of companies in a national context.
- VAT ID: Used to identify companies in international trade, particularly within the EU.