New number for (almost) everyone from October 24, 2024

The new economic ID number is coming to millions of citizens in Germany

Frankfurt am Main

September 23, 2024

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An important innovation will come into effect on October 24, 2024: the Business Identification Number. All companies, self-employed individuals, and many citizens in Germany will receive this new number, which they will be required to use in their dealings with tax offices and other government agencies.

But what exactly does that mean for you?

Here are the four most important points you should know:

1. Who gets the number?

   The Business Identification Number applies to all economically active individuals in Germany—that is, all companies and self-employed individuals, regardless of size, whether limited liability companies (GmbH), sole proprietors, or freelancers. Part-time self-employed individuals and partnerships (GbR) are also included. Employees and private landlords are currently exempt, but this could change in the future.

2. Why is the Economic Identification Number being introduced?

   The Federal Ministry of Finance's plan: Instead of many different numbers (such as tax number, VAT ID, company number, etc.), there will be one central number. The goal is to reduce administrative burden and simplify processes. However, the new number also offers advantages for authorities, who can access all relevant data with just one click.

3. How do you get the number?

   If you already have a VAT ID, the business ID is simply created by appending "-00001" to your existing VAT ID. You won't receive a separate notification; you'll have to compile the number yourself. For those without a VAT ID (e.g., small business owners), the business ID is assigned automatically via Elster or your tax advisor.

4. When does this all apply?

   The regulation will come into force on October 24, 2024. From that date, everyone with a VAT ID must use the new business identification number. Those without a VAT ID will receive notification by November 30, 2024, at the latest. Founders and new companies will not be assigned their number until July 1, 2025.

Important to know: This new number is not optional – it must be used when dealing with the tax office and later with other authorities.