Basics
Tax Number vs. VAT ID: What\
Tax number, VAT ID, tax ID - many self-employed are confused. Here you learn the difference.
Anna Schneider
·
·10 min read read
There's often confusion about tax numbers. Which number belongs on the invoice? Here's the explanation.
The Three Most Important Numbers
1. Tax Identification Number (Tax ID)
- 11-digit number
- Valid for life, never changes
- For private individuals, not for businesses
- Does NOT belong on invoices
2. Tax Number
- Assigned by tax office
- Format: XXX/XXX/XXXXX
- For tax matters
- Can change when moving
- May appear on invoices
3. VAT Identification Number (VAT ID)
- Format: DE + 9 digits (e.g., DE123456789)
- From Federal Central Tax Office
- Required for EU-wide business
- Must appear on invoices to EU companies
Which Number on the Invoice?
| Situation | Number on Invoice |
|---|---|
| Domestic (Germany) | Tax number OR VAT ID |
| EU abroad (B2B) | VAT ID (mandatory) |
| Third countries | Tax number or VAT ID |
Applying for VAT ID
- Online at BZSt (bzst.de)
- Application by form
- Processing: approx. 1-2 weeks
- Free
Invoices with correct tax number? With Clever Invoice all mandatory information is automatically inserted.
Frequently asked questions
Do I need a VAT ID as a small business owner?
Not necessarily. Only when you do business with EU companies do you need a VAT ID. Application is free.
What happens if I provide the wrong number?
The invoice could be challenged by the tax office. The customer may not be able to claim input tax deduction.