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Last updated on January 6th, 2023 at 11:34 am
Figuring out your German freelance tax ID is the first step for starting your self-employment in Germany. Let’s learn about all about tax IDs for freelancers in Germany.
If you are thinking about setting up a freelance business in Germany, then you will eventually have to deal with German freelancer taxes at some point. In this post you will learn about the most important German tax IDs that every freelancer in Germany should be aware of:
- German national tax ID
- German freelance tax number
- German VAT ID
If you are short on time, watch a quick video recap of this post here.
German Tax ID (Steueridentifikationsnummer/ Steuer-ID)
German tax ID is a form of a social security number or a personal tax id.
Every legal resident in Germany has a Steueridentifikationsnummer (aka Steuer-ID in short). Sometimes it is also called Identifikationsnummer (Identification Number)
All individuals receive an 11-digit identification number to ensure their unique identification within the German tax system. The number will not change if you move home or marry. It will be attached to you for your whole life. It does not contain any information about you or the tax office responsible for your tax affairs.
German tax ID number comes in a XX XXX XXX XXX format.
How to get your German tax ID?
Once you register your address at your local town hall (Rathaus), you automatically receive a Steuer-ID in snail mail. This can take about 3-4 weeks from the day of your registration.
If you misplace this number, you can request your German tax ID very conveniently through this straightforward online form.
Bear in mind that it can take authorities a few weeks to process your new German tax ID. You can expect about four weeks or more to obtain the Steuer-ID by post mail.
If you want to get your German freelance tax number then you will need your German Steueridentifikationsnummer.
German Freelance Tax Number (Steuernummer)
A German freelance tax number is called a Steuernummer (tax number). Anyone who wants to become a sole trader or a freelancer in Germany needs this tax id to report their freelance taxes to German tax authorities.
German freelance tax number comes in a XX/XXX/XXXXX format.
How to get your German freelancer tax number?
You can get the freelance tax number in Germany by filing up a form called “Fragebogen zur steuerlichen Erfassung”, which is submitted to your responsible Finanzamt through ELSTER.
Once you submit the form, Finanzamt will send your German freelance tax ID via snail mail in 2-4 weeks.
Newcomers in Germany may find this form very overwhelming because of technical and tax-related German terminologies. This post has a line by line explanation of this form in English.
You can also use a simple English tool such as Accountable to register yourself as a freelancer in Germany.
German VAT ID (Umsatzsteuer-ID)
A VAT ID is called Umsatzsteuer-Identifikationsnummer, Umsatzsteuer-ID or USt-Identifikationsnummer or USt-IdNr. in German.
VAT is called Umsatzsteuer or Mehrwertsteuer in German.
A German (or European) VAT ID comes in a 9 digit number with the format DEXXXXXXXXX.
Before applying for a German VAT ID, make sure whether you need it in the first place.
If your annual income is lower than 22.000 Euros in the past financial year (and lower than 50.000 in the current financial year), you are classified as a small business owner and therefore will be exempt from VAT. This is called Kleinunternehmerregelung (small business regulation).
You will not get a VAT number if you declare yourself as a small business owner (Kleintunternehmer) since small businesses do not need to charge VAT.
Read more about Kleinunternehmerregelung (small business regulation).
How to get your German VAT ID?
You can apply for a German VAT number by filling out the Fragebogen zur steuerlichen Erfassung (the above-mentioned form).
As of 2021, you can fill up and send this form online via ELSTER. This tool is only available in German and many non-German speakers find it tedious to use.
You can easily fill your German tax registration form on an English tax filing tool such as Accountable.
Differences between German Tax ID, German Freelance Tax Number, and VAT ID
|German Tax ID||German Freelance Tax Number||VAT ID|
|Commonly known as a Steuer-ID||Commonly known as a Steuernummer||Commonly known as a Umsatzsteuer-ID|
|Every legal resident in Germany has this number as their personal tax ID.||This is required for self-employed people in Germany (freelancers and sole traders) to report income tax||Only self-employed people who charge VAT need this number to report VAT to German tax authorities.|
|This ID is attached to you throughout your stay in Germany||You need a new German freelance tax number when you move to a different city in Germany||You may not need a VAT ID if you are registered as a small business in Germany|
If you want to register yourself as a freelancer in Germany, then read this step by step guide.
Did I miss any important detail about German tax ID, VAT number or freelance tax number in Germany? Please feel free to leave your thoughts in the comments below!
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