Depending on your registration status as a "Kleinunternehmer" (small business) or "Subject to VAT", the obligations are completely different.
What is a VAT-ID
As a Self Employed, your Steuernummer allocated by the Finanzamt is your German business tax ID. You need this number to invoice your clients in Germany, to collect VAT and file your taxes.
However, this number is only valid in Germany.
When doing business outside of Germany, you need a European standard format tax number for your business. This is the VAT-ID. The format is DExxxxx.
In Accountable, the app will ask you to input your VAT-ID where necessary to do your taxes accordingly.
Subject to VAT
You will need a VAT-ID to to business with other European entities:
Invoicing clients -> you will charge 0% VAT, under the Reverse-charge regime. Your client will declare VAT in their country
Purchasing from providers -> you will pay 0% VAT under the Reverse-charge regime. You will declare (and deduct) VAT in Germany on these transactions.
Kleinunternehmer (small business)
As a small business owner, you do not need a VAT ID. Within Europe, everyone is aware of the Kleinunternehmer status and you should refer to this status in your intra-EU invoices as well. A VAT ID is not necessary as a small business owner and is also not recommended.
If you have registered for a VAT ID by mistake, we recommend that you do not use it. Especially not for purchases, because this automatically forces you to submit a VAT return. This is not intended for small businesses and is not supported. European providers should charge you with VAT and not under the reverse charge regime.
If you want to sell as a Kleinunternehmer on an e-commerce platform, it is best to register as a private individual due to your small business status. Entrepreneurs are always required to have a VAT ID, which you usually do not have as a small business owner.
If you have any questions about this, please contact our tax coaches via chat.