The German business identification number – for all kind of economic operators
Brigitte Jakoby
by Brigitte Jakoby
Germany’s federal central tax authority – the Bundeszentralamt für Steuern (BZSt) – will gradually assign each economic operator a business identification number (W-IdNr.) for unique identification in taxation procedures. Natural persons, legal entities, and associations of persons can be considered economically active.
The W-IdNr. will be assigned in stages for technical and organisational reasons. It is not necessary or possible to apply to a tax authority for the allocation of the W-IdNr. The W-IdNr. serves as a standardised and permanent identification feature and is also used as a nationally standardised business number according to the basic business data register.
The basic business data register is a central and interdepartmental project for administrative digitisation and modernisation. The aim of the basic register is to relieve companies of reporting obligations by avoiding multiple reporting of master data to different registers (the once-only principle).
The W-IdNr. remains valid for the duration of the entire business and does not change. The structure of the W-IdNr. corresponds to that of the VAT-ID number, and consists of the letters “DE” and nine digits. Furthermore, a five-digit distinguishing feature is added to the W-IdNr. For example, a W-IdNr. with the distinguishing feature 00001 could look as follows: DE123456789-00001.
The VAT ID number is still valid and to be used as usual. It is important to note that the W-IdNr. does not replace the VAT-ID number.
All economic operators with an existing VAT ID number will be assigned this VAT ID number as a W-IdNr. with effect from a cut-off date to be determined by public announcement. It is important to note that except for a public announcement expected in October 2024, no notification letter will be sent to economic operators or their tax advisors.
For economic operators without a VAT ID number who are already registered for VAT or are small businesses, electronic notification of a VAT ID number is expected to take place from November 2024 onwards. If the taxpayer has a tax advisor with the corresponding authorisation to disclose, the notification will be sent to the tax representative.
For all other kinds of other economic operators, the W-IdNr. is expected to be allocated electronically from the third quarter of 2025 onwards.
If several economic activities are carried out, the BZSt will assign further distinguishing features from the first quarter of 2026 onwards. Economic operators and their advisors will be informed of this separately. Until then, the W-IdNr. will be issued with the distinguishing feature 00001.
The W-IdNr. is effectively a tax ID for entrepreneurs, freelancers, and companies, and will in future be mandatory as an identification feature on all applications, declarations, and notifications to tax authorities. However, there are generous transitional provisions before this applies. For example, one is not obliged to use the W-IdNr., and the distinguishing feature in the electronic tax return forms for the time being until the initial allocation of the W-IdNr. has been fully implemented.
In 1987, Brigitte Jakoby started collaborating with her husband Eugen Jakoby, also a German chartered accountant and German certified tax advisor. Since 1996, she has been a senior partner at Jakoby Dr. Baumhof. Contact Brigitte.
Jakoby Dr Baumhof – Wirtschaftsprüfer Steuerberater Rechtsanwälte is a medium-sized, interdisciplinary company located in the south of Germany, with offices in Rothenburg ob der Tauber, located in Northern Bavaria, and Ebersberg, near Munich.
GGI Member FirmJakoby Dr Baumhof – Wirtschaftsprüfer Steuerberater RechtsanwälteRothenburg o.d.T., Ebersberg, GermanyT: +49 98 619 40 50
Advisory, Auditing & Accounting, Corporate Finance, Law Firm Services, Tax
