Freelancing in Germany can be tough – between finding clients, doing the work, and learning the language, you also have to face the German tax system<\/b>. \ud83d\ude05 And as if understanding when and how to file your taxes wasn\u2019t enough, Germany gives you up to four different tax numbers<\/b>. Here\u2019s how to make sense of them \ud83d\udc47<\/p>\n
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Here is how to read\/understand them:<\/p>\n
The Pers\u00f6nliche identifikationsnummer<\/b> is your personal tax number. You use this number for your yearly income tax (as a tax payer in Germany).<\/p>\n<\/li>\n The Steuernummer<\/b> is your business tax number. You use it on your sales invoices.<\/p>\n<\/li>\n The VAT-ID<\/b> (DExxxx) is your European-format business tax number. You need to use it on your sales invoices when selling services to companies located in other European countries, or when purchasing from European suppliers if you are subject to VAT.<\/p>\n<\/li>\n The Wirtschafts-ID (business identification number)<\/b> is a unique identifier for all economically active individuals and entities in Germany. It will help reduce bureaucracy by streamlining communication between authorities in the future.<\/p>\n<\/li>\n<\/ul>\n \n \n This 11-digit number<\/b> is your personal ID<\/b> as a taxpayer in Germany. \n You should have received a letter from the Bundeszentralamt f\u00fcr Steuern (BZSt)<\/b> with your tax ID when you registered in Germany.<\/p>\n<\/li>\n You\u2019ll also find it on your income tax assessments<\/b> or payslips<\/b>.<\/p>\n<\/li>\n<\/ul>\n No stress – you can easily request it again through the online form on the BZSt website<\/b><\/a> <\/b>(this is the website of the national tax office).<\/p>\n \n \u200b<\/p>\n This is your business tax number<\/b> – the one you use on your sales invoices<\/b> as a self-employed person. \n It has 10 or 11 digits<\/b>, for example: The number format depends on your Bundesland (federal state)<\/b>.<\/p>\n<\/li>\n If you move to another state (e.g. from Hamburg to Berlin), you\u2019ll get a new Steuernummer<\/b>, since a different tax office will handle your file.<\/p>\n<\/li>\n<\/ul>\n \ud83d\udc49 Tip:<\/b> You can find your responsible tax office using the search function on the BZSt website<\/a>. <\/p>\n \n \u200b<\/p>\n This optional number is your European-format business tax ID<\/b> – it starts with DE<\/b>, like \n You sell services to clients in other EU countries<\/b>.<\/p>\n<\/li>\n You buy goods or services from European suppliers<\/b> and are subject to VAT<\/b>. <\/p>\n<\/li>\n<\/ul>\n \ud83c\udfe2 The Business Identification Number (Wirtschaftsidentifikationsnummer)<\/b><\/h1>\n Since November 2024, the Business Identification Number (W-IdNr.) is being gradually introduced. It is the central identification feature for all economically active individuals in Germany, including the self-employed.<\/p>\n \n The W-IdNr. does not<\/b> replace any of the existing tax numbers, but complements them as an identification number in tax and administrative processes. It stays with you for your entire \u201cbusiness life.\u201d<\/p>\n \n It is designed to make tax and administrative processes simpler and more digital. In the long run, the W-IdNr. will help reduce bureaucracy by enabling more efficient communication between authorities. <\/p>\n Through the “Once-Only Principle,” certain information only needs to be provided once, and authorities can automatically use it in future processes. This makes it easier for you to fulfil your tax obligations and improves communication with the tax authorities.<\/p>\n \n All economically active individuals, including the self-employed, freelancers, and businesses, will automatically receive a W-IdNr.<\/p>\n \n If you already have a VAT-ID (USt-IdNr.), it will be used as your W-IdNr.<\/p>\n \n If not, your W-IdNr. will be assigned to you through your Elster user account. You can find it in your tax documents or receive it directly via Elster.<\/p>\n \u200b<\/p>\n \n \ud83d\udcca Type<\/p>\n<\/td>\n \ud83c\udde9\ud83c\uddea German Name<\/p>\n<\/td>\n \ud83d\udca1 Use It For<\/p>\n<\/td>\n \ud83d\udd22 Format<\/p>\n<\/td>\n<\/tr>\n \ud83e\udeaa Personal Tax Number<\/p>\n<\/td>\n Pers\u00f6nliche Identifikationsnummer<\/p>\n<\/td>\n Yearly income tax return<\/p>\n<\/td>\n 11 digits<\/p>\n<\/td>\n<\/tr>\n \ud83d\udcbc Business Tax Number<\/p>\n<\/td>\n Steuernummer<\/p>\n<\/td>\n Your sales invoices<\/p>\n<\/td>\n 10\u201311 digits (e.g. 079\/123\/12347)<\/p>\n<\/td>\n<\/tr>\n \ud83c\udf0d VAT-ID<\/p>\n<\/td>\n Umsatzsteuer-Identifikationsnummer<\/p>\n<\/td>\n EU-wide sales & purchases<\/p>\n<\/td>\n DE + 9 digits<\/p>\n<\/td>\n<\/tr>\n \ud83c\udfe2 Business ID <\/p>\n<\/td>\n Wirtschafts ID<\/p>\n<\/td>\n Future tax and administrative processes<\/p>\n<\/td>\n DE + 9 digits<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\ud83e\udeaa Personal Tax number (Pers\u00f6nliche Identifikationsnummer)<\/b><\/h1>\n
You\u2019ll need it when filing your yearly income tax return<\/b>.<\/p>\n\ud83d\udcec Where to find it:<\/b><\/h2>\n
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\ud83d\udca1 Lost it?<\/b><\/h2>\n
\ud83d\udcbc Business tax number (Steuernummer)<\/b><\/h1>\n
You\u2019ll receive it by mail once you register your business with the Finanzamt<\/b> (local tax office).<\/p>\n\ud83e\uddfe What to know:<\/b><\/h2>\n
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079\/123\/12347<\/code>.<\/p>\n<\/li>\n\ud83c\udf0d VAT-ID number <\/b>(Umsatzsteuer-Identifikationsnummer)<\/h1>\n
DE123456789<\/code>.<\/p>\n\ud83d\udcb6 When you need it:<\/b><\/h2>\n
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\ud83d\udd11 Why is the W-IdNr. important?<\/b><\/h2>\n
\ud83d\udd0d Where can I find my W-IdNr.?<\/b><\/h2>\n
\u2705 Quick Overview<\/b><\/h1>\n
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