Tax number or VAT ID: the difference
An invoice must show either your tax number or your VAT identification number (VAT ID); one of the two is sufficient (§ 14(4) no. 2 UStG, the German VAT Act). Your tax office issues the tax number for domestic taxation, while the Bundeszentralamt für Steuern (Federal Central Tax Office) issues the VAT ID for trade within the EU. The personal tax ID is something else and does not belong on the invoice.
Three numbers, three purposes
In everyday use, the terms are often confused. In fact, there are three different numbers:
| Tax number | VAT ID | Personal tax ID | |
|---|---|---|---|
| Who issues it? | competent tax office | Bundeszentralamt für Steuern (BZSt) | Bundeszentralamt für Steuern |
| What for? | tax returns and communication with the tax office | transactions with businesses in other EU countries | identification of natural persons, for example for income tax |
| Structure | 10 or 11 digits depending on the federal state, 13 digits in ELSTER format | DE plus 9 digits | 11 digits |
| Does it change? | yes, for example when moving to another tax office district | no | no, it is valid for life |
| On the invoice? | yes, as an alternative to the VAT ID | yes, as an alternative to the tax number, mandatory for EU business | no |
The tax number
You receive your tax number from the tax office as soon as you register using the tax registration questionnaire. Businesses may have several tax numbers for different types of tax or establishments. Because it is tied to the tax office, it changes if you move to another district.
The VAT identification number
The VAT ID identifies businesses in the European single market. German VAT IDs start with DE and have nine digits. You need the number if you supply goods or services to businesses in other EU countries or purchase from them. Your business partners can have the number confirmed by the BZSt.
The personal tax ID
Every person registered in Germany, including children, automatically receives the tax identification number (§ 139b AO, German Fiscal Code). It is used for income tax and stays the same for life. It has no place on invoices: it does not meet the requirements of § 14 UStG and is a personal identifier that you should not disclose unnecessarily.
And the business identification number?
Since November 2024, the BZSt has gradually been issuing the business identification number (W-IdNr.). It is structured like the VAT ID, supplemented by a five-digit distinguishing feature, for example DE123456789-00001. According to the BZSt, the W-IdNr. does not currently meet the requirements of § 14 UStG. For your invoice, you therefore still use the tax number or VAT ID.
Which number belongs on the invoice?
For invoices to customers in Germany, you are free to choose: tax number or VAT ID. Many businesses prefer to state the VAT ID because they do not want to print the tax number under which they communicate with the tax office on every document. Both options are equally valid.
The same applies to small businesses: their invoices also contain the tax number or VAT ID (§ 34a UStDV, German VAT Implementing Ordinance).
In an e-invoice, the chosen number is entered in a fixed field of the structured data. The article All fields of the XRechnung explains which fields these are. You can find the complete list of mandatory details in the article Mandatory invoice details under § 14 UStG.
Invoices to other EU countries
For business with companies in other EU countries, the VAT ID is indispensable. For a tax-exempt intra-Community supply and for services for which the customer owes the tax (reverse charge), your VAT ID and that of your customer must appear on the invoice (§ 14a(1) and (3) UStG). Check your customer's number in advance, for example via the BZSt confirmation procedure.
The article Tax categories and VAT ID explains which tax category in an e-invoice requires a VAT ID.
How do you get a VAT ID?
The VAT ID is issued by the Bundeszentralamt für Steuern. The prerequisite is that your tax office has already registered you for VAT. There are two ways:
- When setting up your business: tick the application box in the tax registration questionnaire. The tax office forwards the data to the BZSt. This can take a few weeks.
- Later: via the BZSt online form or in writing, stating your name, address, competent tax office and tax number.
The number is sent to you by post, not by email or telephone. The BZSt provides further information on its page on issuing the VAT ID.
Note: This article is for general information purposes only and does not replace tax advice.
Frequently asked questions
Tax number or VAT ID: which one has to be on the invoice?
One of the two is sufficient. For invoices to businesses in other EU countries, you generally need the VAT ID.
What is the difference between the tax number and the VAT ID?
The tax number is issued by the tax office for domestic tax purposes and can change if you move. The VAT ID is issued by the BZSt for the EU single market and remains the same.
May the personal tax ID appear on the invoice?
No. The personal tax ID does not meet the requirements for an invoice and should not be passed on. Use the tax number or VAT ID.
Do small businesses need a VAT ID?
Not necessarily. For domestic invoices, the tax number is sufficient. Anyone who purchases services from or provides services to businesses in other EU countries can apply for a VAT ID.
Does the business ID replace the tax number on invoices?
Not at present. According to the BZSt, the W-IdNr. does not currently meet the requirements of § 14 UStG.