Germany VAT ID Number: How to Search, Format & Verification

The German VAT Identification Number (USt-IdNr) is a unique EU-wide tax number assigned by the Federal Central Tax Office (BZSt) to businesses involved in cross-border trade. It allows companies to trade within the EU without charging VAT, ensuring compliance with EU tax laws.

Key Takeaways

• German VAT ID (USt-IdNr) begins with “DE” followed by 9 digits (example: DE123456789).
• It is different from the domestic tax number (Steuernummer) and used only for EU cross-border trade.
• Required for EU B2B sales, purchases, OSS participation, and Amazon FBA operations.
• Verification can be done via the EU VIES tool or Germany’s BZSt portal.
• Penalties include back taxes, fines up to €50,000, and possible business suspension for non-compliance.
• Holding a valid VAT ID enables zero-rated transactions and builds trust in EU business dealings.

What is a VAT ID Number in Germany? (USt-IdNr)

VAT ID number (Umsatzsteuer-Identifikationsnummer) is a legal EU identification number of a company involved in international dealings. It is published by the Federal Central Tax Office of Germany (BZSt) and accepted in all EU member countries. 

Unlike the domestic tax number, the id VAT number enables businesses to zero-rate intra-EU supplies of goods and services and confirms their status as VAT-registered traders. It is applied on invoices, VAT returns and EU reporting systems. Here are the key details:

• VAT ID Structure: A VAT ID number in Germany is consistently 11 figures, with DE preceded by 9 digits (example: DE123456789)
• Different from Tax Number: The VAT identification number (USt-IdNr) is used for EU cross-border trade, while the Steuernummer is used for domestic tax reporting.
• Who Needs It: Businesses that trade goods or services in the EU have to have its VAT ID, purely domestic business may not need it.
• Verification: A VAT identification number check can be done via the EU's VIES system or Germany's BZSt portal.
• Penalties: Failure to register where necessary may lead to back taxes, fines, penalties of late payments and incurring business restrictions.

Suggested Read: e-Invoicing in Germany: Guidelines, Timeline, Scope, Requirements & Format

VAT ID Number Format & Example

Every country in the EU has a specific VAT ID format. In Germany, it is fixed and straightforward.

Format rules for Germany:

• Always begins with DE.
• Always followed by 9 digits (leading to zeros possible).
• No spaces, punctuation or special symbols allowed.

Example:

• Company: Example GmbH
• VAT ID: DE214534776
• Usage: Appears on invoices to EU customers, and it’s included in VAT returns and verifiable via the VIES database.

Incorrect examples include “DE12345678” (too short) or “DE1234567890” (too long).

Who Needs a VAT Identification Number in Germany?

Not all German businesses automatically receive a VAT ID. A VAT tax number is specifically required in the following cases:

• Cross-border B2B supplies: Companies that sell their goods or services to other companies in the EU member countries should use a VAT ID to exempt the transaction.
• Purchases from EU suppliers: German companies making purchase of EU vendors need to present their VAT ID so as not to pay foreign VAT.
• Participation in EU schemes: Companies that operate using OSS (One Stop Shop) or deposit goods in other EU states (e.g. Amazon FBA sellers) require valid VAT IDs.
• Triangulation transactions: EU three-party trade chains Intermediary businesses in three-party trade chains require VAT IDs.
• Freelancers/Service providers: Professionals to serve clients within the EU must have VAT ID in order to make use of reverse-charge mechanism.

Who does not need VAT ID:

• Local companies selling locally in Germany to local consumers
• Small firms with a tax exemption of Kleinunternehmer VAT.
• Personal consumers, because personal persons can not be provided with VAT IDs.

How to Find my VAT Number in Germany (Steuer-ID): Step-by-step Guide

Finding Your Own VAT ID:

• Published by the BZSt (Federal Central Tax Office), generally mailed out when registered.
• Viewable either on official correspondence or on the ELSTER tax portal.
• Companies are required to make application online where they had not earlier requested the same upon registration.

Verification of Trading Partners

To prevent VAT fraud and ensure compliance, companies must perform a VAT ID number check for EU transactions.

Verification Methods:

• VIES (VAT Information Exchange System) – online tool that is EU-wide and just does basic validation (valid/invalid).
• BZSt Portal (Germany) – Provides qualified validation, which is the verification of the name and address and the VAT ID of a name and address submitted.

Steps for verification via BZSt:

• Enter in your VAT ID and your partners VAT ID.
• Give the business name and address of the partner.
• The system establishes the validity of the VAT ID, and its ownership by that entity 

Recordkeeping tip: Recordkeeping tip: It is always good to have digital or print evidence of verification as German tax authorities may demand evidence when they audit you..

Penalties for Not Registering for VAT in Germany

Lack of registration of a VAT ID number when it is needed lead to financial and compliance risks.

• Back Taxes: All VAT which should have been imposed but not collected on customers must be paid by the businesses.
• Late Filing Penalties: 10% of outstanding VAT (limited at EUR 25,000) of late filings.
• Late Payment Surcharge: 1 percent per month on the outstanding VAT.
• Interest: It is usually 0.5 percent per month on the outstanding taxes.
• Criminal Charges: Willful evasion can be considered tax fraud, which results in criminal prosecution.
• Incorrect Invoicing: British Invoicing without registration may lead to further penalty and liability.
• Marketplace Restrictions: Online websites like Amazon ban the sellers who do not submit valid VAT IDs.

Conclusion

The VAT identification number (USt-IdNr) is an important requirement for businesses operating in Germany and across the EU. A registered VAT ID number Germany enables businesses to conduct business on a cross-border basis without any unnecessary costs of VAT, providing compliant invoices, and claiming input tax appropriately.

Businesses are in danger of being back-taxed, fined, and their accounts being suspended without being properly registered or verified. By securing a valid VAT ID number Deutschland and carrying out routine VAT ID number checks, companies ensure compliance, build trust with EU partners and operate efficiently within the European VAT framework.