- Germany has introduced a new identification number called the Wirtschafts-Identifikationsnummer (W-IdNr) to simplify tax and administrative processes for businesses
- The W-IdNr will be gradually assigned to companies starting in November 2024, alongside the VAT ID and tax ID
- For online sellers, the W-IdNr brings new compliance requirements and benefits
- The W-IdNr is a unique identification number for businesses and individuals in Germany, assigned by the Federal Central Tax Office
- It aims to enhance efficiency, reduce bureaucracy, and support digitalization in Germany’s tax system
- The W-IdNr format includes the first 11 digits matching the VAT ID and the last five digits representing specific business activities
- Businesses do not need to apply for the W-IdNr, as it will be automatically assigned by the BZSt
- Online sellers should proactively check for their assigned W-IdNr through the BZSt’s portal, ELSTER
- Companies with a VAT ID will be notified publicly that their VAT ID now serves as their W-IdNr, while those without a VAT ID will receive notification through their ELSTER account
- Initially, the W-IdNr is optional on tax forms, but will eventually become the primary identifier for tax administration.
Source: hellotax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
