Requesting a VAT Identification Number in Germany: How to Do It Correctly

Have you just founded a new business in Germany or are you planning to sell products via Amazon or eBay in Germany? Or are you considering expanding into the German market? In these cases, you’ll need a German VAT identification number (Umsatzsteuernummer/USt-IdNr.) to correctly remit value-added tax and operate in compliance with international tax regulations. A VAT identification number is also required if you make intra-community supplies within the EU or purchase from other businesses in the EU. We’ll show you exactly how the process works, where and how you can request your German VAT identification number, and how to regularly file German VAT advance return filings. However, our detailed information on German VAT rates does not replace the advice of a reliable tax advisor.

You can also hand over registration, admin and ongoing obligations: we take care of them in Company Formation & Admin.

What is the VAT Identification Number (USt-IdNr.)?

The VAT identification number (USt-IdNr.) is required in all EU countries when businesses sell goods or services to businesses in other EU member states or purchase from them. It serves to identify cross-border transactions and is used for intra-community supplies, where the reverse charge procedure is applied.

Under the reverse charge procedure, the buyer assumes responsibility for calculating and remitting the VAT to the tax authorities. Normally, the seller bears this obligation, but under reverse charge, it is transferred to the buyer. This procedure is particularly applied in intra-community supplies and certain services such as construction or consulting services.

For businesses, this means that they can generally deduct the input VAT paid if they are entitled to input tax deduction. Thus, VAT does not need to be paid directly at the time of purchase, but is instead remitted in the tax return. This procedure simplifies tax settlement in international transactions and prevents businesses from paying VAT multiple times. The VAT identification number ensures that these regulations are correctly applied.

What does a German VAT identification number (USt-IdNr.) look like?

In Germany, the VAT identification number (USt-IdNr.) begins with the abbreviation DE, followed by nine digits. It thus has the structure DE123456789. In other EU member states, the structure is similar. The VAT identification number begins with the country code of the respective EU state, followed by up to twelve alphanumeric characters, depending on the country.

When is a German VAT identification number (USt-IdNr.) necessary?

In general, a German VAT identification number (USt-IdNr.) is not required if you work as a freelancer, self-employed person, or entrepreneur and only provide or receive services within Germany. In this case, the tax number your tax office assigns to you is sufficient. A VAT identification number is also not necessary if goods are sold to private persons within Europe. Additionally, small businesses (e.g., sole proprietors, UG, GmbH) that use the small business exemption often don’t need a VAT identification number. If you provide services to, or receive them from, businesses in other EU countries, you may need one too.

However, the VAT identification number becomes required as soon as you sell or purchase products and services to or from business customers within the EU. These business relationships are referred to as intra-community supplies or goods deliveries. The legal basis for this is detailed in the German Value Added Tax Act and with the Federal Central Tax Office (Bundeszentralamt für Steuern) in Germany.

Foreign businesses that offer goods or services in Germany are generally required to register in Germany and pay VAT. This requires registration with the competent tax office. Online marketplaces such as Amazon or eBay often require a VAT certificate before you can begin selling in Germany.

Examples of foreign businesses for which a German VAT identification number is required:

• Operating a German consignment warehouse and selling products to German customers
• Organizing live events (conferences, concerts, educational events) in Germany
• Using the German Amazon Fulfillment Service (FBA) as a foreign Amazon seller with delivery via the German warehouse

Are there exceptions where a German VAT identification number (USt-IdNr.) is not required?

Yes, there are exceptions where a German VAT identification number (USt-IdNr.) is not required. These include:

• Small Business Exemption: If your revenue falls below certain thresholds (since 2025: no more than 25,000 euros in the previous year and 100,000 euros in the current year, § 19 UStG), you may be exempt from VAT obligations as a small business and would not need a VAT identification number.
• Non-profit Organizations: Non-profit organizations that do not charge VAT generally do not need a VAT identification number.
• Exempt Goods and Services: If you exclusively offer goods or services that are exempt from VAT, a VAT identification number may not be necessary.

If you are unsure whether you need a VAT identification number, you can contact the competent tax office, a tax advisor, or us to clarify your specific situation.

Save Time and Effort in Applying for a German VAT Identification Number (USt-IdNr.)

In collaboration with our partner tax advisors, we can help you save time and effort in communicating with German tax authorities. Our service includes:

• Compilation of necessary information and documents
• Support in answering official inquiries
• Application for a tax number and VAT identification number (USt-IdNr.)
• Monthly support, if desired

When you should apply for a German VAT identification number (USt-IdNr.)

German businesses can apply for the VAT identification number (USt-IdNr.) directly when founding the business. When you register your freelance activity or business (e.g., UG or GmbH) with the tax office, you must complete the questionnaire for tax classification. In this questionnaire, you can also directly check the box for requesting the VAT identification number and receive it automatically. If you did not apply for the VAT identification number when founding your business, you can do so at any time with the Federal Central Tax Office, together with filing your regular tax returns to fulfill your VAT obligations.

If a foreign business generates sales in Germany, that revenue is subject to German VAT, just as with domestic businesses. Foreign businesses are those that do not have a branch office, executive office, or subsidiary office in Germany. To comply with their VAT obligations, foreign businesses may be required to register for VAT purposes in Germany, even if they do not have a physical presence in Germany. This can be done by appointing a tax representative in Germany, as required by the European Union. This representative assumes tasks such as filing VAT advance returns, paying VAT, requesting VAT refunds, and conducting tax audits on behalf of the business.

For this VAT purpose, the business must register with the competent tax office as soon as it begins selling its products or services on the German market.

How to apply for a German VAT identification number (USt-IdNr.)

On average, it takes approximately one to two months for a VAT identification number (USt-IdNr.) to be issued. There are significant differences depending on location and workload of the tax offices. As a rule, following up after submitting the application does nothing to expedite the process. The VAT identification number will then be sent to you by mail. The application for a VAT identification number is free of charge.

German businesses can apply for the VAT identification number either online or by mail. The online form can be used between 5 a.m. and 11 p.m. The application must include the competent tax office, the tax number, the legal form including the name, postal code and location of the business, or in the case of a sole proprietorship, the surname, first name and date of birth of the owner. The written application for the VAT identification number must be sent to: Federal Central Tax Office, Saarlouis Service Office, 66738 Saarlouis, Fax: +49-(0)228-406-3801. The application must contain the name and address of the applicant, the competent tax office, and the tax number.

Foreign businesses must submit an application to the competent tax office. This is legally regulated under Section 21 of the German Tax Code (Abgabenordnung/AO) paragraph 1 sentence 2. Most tax offices only communicate in German.

Source: Regulation on Territorial Jurisdiction for VAT of Entrepreneurs with Registered Office Abroad (VAT Jurisdiction Regulation – UStZustV)

Conclusion

Applying for a German VAT identification number (USt-IdNr.) is an important step for businesses operating in Germany or within the EU. It is required if you supply goods or services to business customers in other EU member states or purchase from them. In particular, for businesses that make use of the small business exemption or do not conduct cross-border transactions, there is no obligation to obtain a VAT identification number.

When needed, you can contact the Federal Central Tax Office both online and by mail. The process typically takes one to two months and is free of charge. Foreign businesses that generate sales in Germany must also register for a VAT identification number. With our support, you can ensure that all tax obligations are met correctly and your business operates in international tax compliance.

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