Freelancing in Germany can be tough. Between working, acquiring new clients, and learning the language, you also have to deal with the German tax system. And as if understanding when and how to lodge your taxes wasn’t difficult enough, Germany throws up to 3 different tax numbers at you.
Here is how to read/understand them:
The Persönliche identifikationsnummer is your personal tax number. You use this number for your yearly income tax (as a tax payer in Germany).
The Steuernummer is your business tax number. You use it on your sales invoices.
The VAT-ID (DExxxx) is your European-format business tax number. You need to use it on your sales invoices when selling services to companies located in other European countries, or when purchasing from European suppliers if you are subject to VAT.
Personal Tax number (Persönliche identifikationsnummer)
This 11-digits number is your personal number as a private tax payer in Germany.
You will use this number to file your yearly income tax return.
If you were born in Germany or are registered in the country for tax reasons, you should have received a letter from the tax office assigning you an IdNo. Your tax identification number is also stated on your income tax assessments.
Alternatively, if you didn’t receive a letter or simply can’t find it, you can request the letter with your IdNo to be sent again using the input form on the website of the BZSt.
Business tax number (Steuernummer)
This is your business tax number. You receive it in a confirmation letter after you register as a Self-Employed.
You have to use this number on your sales invoices.
The Steuernummer consists of 10 or 11 digits, depending on the Finanzamt. It has this format, for example: 079/123/12347.
The tax number is assigned differently depending on which state (Bundesland) you live in. For example, if you move from Hamburg to Berlin and you change your address, you will receive a letter from the tax office with a new tax number. This also means that your tax declarations are now handled by a different tax office. If you want to know which tax office is responsible for your taxes, you can use the search function on the website of the national tax office (Bundeszentralamt für Steuern; BZSt).
VAT-ID number
This optional number is your European-format business tax number.
You need to use it on your sales invoices only when selling services to companies located in other European countries.
Also, if you are subject to VAT, you need to provide this tax number to your European suppliers in order to apply reverse-charge (if you are Kleinunternehmer, it's advised not to provide this number and make all your intra-EU purchases like a private individual).