What is the sales tax identification number
Die Sales tax identification number Is for B2B transactions Mandatory in (European) countries and must be on appropriate invoices expelled become. This applies to both companies involved. However, it is not mandatory for business relationships with private customers for Germany-wide trade and within the European Union. Here you are free to enter the tax number on invoices or the Sales tax identification number.
You can apply for the sales tax ID from Federal Central Tax Office. She should the Make it easier to pay sales tax. It relates exclusively to sales tax and uniquely identifies a company. Companies owned by the Small business regulation On the other hand, they do not receive because they do not use sales tax Discharge.
Why do I need the sales tax identification number?
With this, you can Regulatory companies process cross-border transactions, also known as intra-community deliveries, exempt from sales tax. In that case, the service-providing company does not report the sales tax because the service-receiving company pays the sales tax. This applies to goods and supplies in the case of intra-Community deliveries.
In fact, while the service-providing company pays sales tax for private customers and domestic transactions, the reverse charge procedure, so that the service provider can dispense with the sales tax report because the service recipient remits it. You must also add this note to the appropriate invoices specify.
What else do I have to consider?
Before making transactions, companies should check the numbers for accuracy. This can be done via MIAS, the VAT information exchange system. Die Sales tax identification number contains the abbreviation for the country code, eight digits and a check digit. According to §5 TMG, the sales tax ID must be imprint stand. The tax number is mandatory to show on domestic invoices, even for companies without a sales tax ID.
What other types of tax numbers are there?
1. tax number
The tax number identifies a company or person at a responsible tax office. Since jurisdiction may change with a change of location, it is variable. You will receive them from the responsible tax office.
2. Tax identification number
Get the tax identification number natural persons with birth and persists throughout life. that The economic counterpart to this is the economic identification number, which will gradually replace the tax number from November 2024 Should.
3. Economic identification number
Although she is identical to the sales tax ID, but she should Simplify nationwide and inter-agency communication and tax procedures. For example, it should remain in existence as long as a company — regardless of location — is active in business.
Companies can also use their sales tax identification number as Business identification number use. Companies without a sales tax ID receive their business identification number via the ELSTER tax portal. Die Allocation is gradual with transitional arrangements, which is why there are no disadvantages if you don't have a sales tax ID or business ID. One Application is neither required nor intended.
