What the USt-IdNr is and what it is used for
The USt-IdNr (Umsatzsteuer-Identifikationsnummer) is the German VAT number equivalent to the Spanish NIF-IVA and the intra-Community VAT number. It is assigned by the Bundeszentralamt für Steuern (BZSt), the federal central tax office.
You need it to invoice customers in other EU countries without applying VAT, to deduct input VAT and to file the intra-Community operations return. Without this number, your operations within the Union are not correctly identified.
Differences between USt-IdNr, Steuernummer and USt-Nummer
In Germany there are three tax identifiers that are often confused, and each one serves a different purpose.
Key points
- Steuernummer: local tax number assigned by the tax office (Finanzamt) of your district. It is used for ordinary tax returns.
- USt-IdNr: intra-Community VAT number with the DE prefix, assigned by the BZSt. This is the one that appears on your invoices to the EU.
- USt-Nummer: internal VAT number used by some companies for domestic transactions; it is not valid for intra-Community trade.
How to obtain the USt-IdNr when incorporating the GmbH
The USt-IdNr is not requested from the notary: it is assigned after registering the GmbH in the Handelsregister. First you will receive the Steuernummer from the Finanzamt, usually in the weeks following incorporation.
Once the Steuernummer has been assigned, you can request the USt-IdNr through the BZSt form or, in many cases, it is issued automatically when you register for VAT. The number has the structure DE + 9 digits.
Tax registration is filed with the Finanzamt responsible for the GmbH's registered office, and the USt-IdNr is applied for separately from the Bundeszentralamt für Steuern (BZSt). The forms are in German and registration relies on the prior Handelsregister entry.
Timelines and validation in VIES
The complete process of incorporating a GmbH in Germany usually takes between 6 and 14 weeks, and the USt-IdNr is issued within that period, once the commercial register entry is completed.
Before invoicing a European customer, it is advisable to check that their VAT number appears in VIES, the European Commission's verification system. It is a free validation that avoids problems with the tax authorities for transactions with unregistered operators.
The USt-IdNr and German VAT
German VAT (Umsatzsteuer) has a standard rate of 19% and a reduced rate of 7% for food, books and other basic goods. The USt-IdNr is the key to applying VAT correctly on your sales within the EU.
If you sell services between EU companies, in many cases you apply the reverse charge: you do not charge German VAT and you let your client self-assess it in their own country. For this, the USt-IdNr of both parties must appear on the invoice.
What German tax registration requires
German tax registration involves forms in German, coordination with the Finanzamt and deadlines you would rather not miss. The Steuernummer and the USt-IdNr are applied for through different channels and the second depends on the first: without Handelsregister registration the process does not start.
Key points
- Application for the Steuernummer and the USt-IdNr before the Finanzamt and the BZSt
- Validation of your European clients in VIES
- German VAT registration and support with intra-Community invoicing
