The Business Identification Number or Wirtschafts-Identifikationsnummer (W-IdNr) is a new type of identifying number that will be introduced starting in November 2024. The Federal Central Tax Office will begin assigning the W-IdNr automatically to both new and existing businesses from that time, with the process expected to continue until 2026.
Understanding the Business Identification Number (W-IdNr) in Germany
Public
Germany
Author: Stefan Ditrih
Category:
Fiscal subject related
Views:
82
Content accuracy validation date:
03.09.2024
Content accuracy validation time:
08:00h
The Wirtschafts-Identifikationsnummer (W-IdNr) is a unique identifier assigned to businesses in Germany, designed to streamline interactions with financial authorities and other government agencies. This identifier plays a crucial role in simplifying administrative processes and enhancing efficiency in tax-related matters.
For businesses, the W-IdNr brings several benefits:
- Unique Identification: It uniquely identifies your company to tax authorities and other government agencies.
- Simplified Communication: It facilitates communication with authorities, making interactions smoother and more efficient.
- Future Automation: It holds the potential to simplify and automate tax processes in the future, reducing administrative burdens.
The W-IdNr does not replace existing identification numbers such as the Umsatzsteuer-Identifikationsnummer (USt-IdNr). Instead, it is used alongside these numbers to enhance the overall efficiency of administrative processes. While the USt-IdNr is specifically used for intra-community trade within the European Union, the W-IdNr is applicable to all businesses in Germany for tax purposes. Although the introduction of the W-IdNr adds another number, it is intended to simplify administration in the long term. By uniquely identifying companies, the W-IdNr aims to gradually replace existing identification numbers, thereby avoiding duplication and making processes more efficient.
One of the key advantages of the W-IdNr is that it is automatically assigned by the Federal Central Tax Office. This applies to both new and existing companies:
- New Companies: The W-IdNr is assigned during the tax registration process.
- Existing Companies: The W-IdNr will be allocated automatically from November 2024 to 2026. No separate application is required.
The W-IdNr is essential for communication with tax authorities and will also be used as a nationwide business number (beWiNr) in accordance with the Basic Business Data Register Act. This simplifies administrative processes and ensures the clear identification of your company.
Other news from Germany
Reporting of cash registers to the Tax Authority in Germany
Public
Germany
Author: Istvan Bozoki
Germany
Author: Istvan Bozoki
In Germany, there is a mandatory registration and decommissioning of the cash registers to the tax authorities, which has been part of the fiscal law since 2021, but there has been no platform to report this information so far. So, what can you do now and how can you report cash registers? On June 28th, 2024, the German Federal Ministry of Finance issued a new application decree specifying the ca... Read more
EU to protect domestic e-commerce sellers with a cross-border tax reform
Public
Author: Stefan Ditrih
As online shopping continues to grow, the European Union is planning to implement new regulations to protect local e-commerce sellers. One significant change affects consumers who shop on international platforms like Temu or AliExpress. The EU has already taken some steps at the first sign of growing foreign e-commerce sellers, and since July 1, 2021, all goods entering the EU, regardless of their... Read more
New document was uploaded: ELSTER (ERiC) - State tax office system
Public
Germany
Author: Borislav Vukic
Germany
Author: Borislav Vukic
This entails reporting the following events: - ERS registration - ERS deregistration - ERS information updates - Address changes for business premises - Alterations in organizational tax identification - Expiry of BSI certificates (FCC updates to a new certificate version) - Potentially, other miscellaneous changes. ELSTER integration on the Fiskal Portal, data integrity, data integrity e... Read more
E-Invoicing in Germany: Key Information for 2025 - 2028
Public
Germany
Author: Stefan Ditrih
Germany
Author: Stefan Ditrih
Businesses in Germany need to gear up for the mandatory implementation of B2B e-invoicing, as mandated by the Wachstumschancengesetz law which mandates the gradual transition to e-invoicing for all B2B and B2G transactions. The rollout will commence on January 01, 2025, and continue until January 01, 2028, in multiple phases to ensure all businesses can adapt. The government has not proposed a ce... Read more
EU VAT Validation Tool
Public
Author: Kristina Dosen
One way to validate VAT numbers in the EU is the VAT Information Exchange System (VIES), which is a crucial tool for businesses operating within the European Union. Owned by the European Commission, VIES is a search engine that retrieves data from national VAT databases to verify VAT numbers. Here’s a detailed look at how VIES works and its significance. How VIES Works When a search is made usi... Read more
New document was uploaded: Registration process in Germany
Germany
Author: Kristina Dosen
The registration obligation in Germany is called „The notification obligation“, and it has been established under § 146a Absatz 4 of the German Fiscal Code (Abgabenordnung - AO). It mandates businesses using electronic recording systems (POS) to notify tax authorities about using and decommissioning such systems. In this document, you’ll learn more about when was this obligation introduced. What data are needed for notification obligation and much more. Read more