by on June 6, 2025 with No Comments

Economic Identification Number (Wirtschafts-Identifikationsnummer or W-IdNr).

The introduction of the W-IdNr. marks a key milestone in Germany’s broader digital transformation and efforts to reduce bureaucratic burdens within its tax administration. In the long term, the W-IdNr. is expected to serve as a nationwide, uniform economic identifier, facilitating inter-agency communication and supporting the "once-only principle", which aims to eliminate redundant data submissions across government bodies.

Analogous to the tax identification number (IdNr.) for individuals, the W-IdNr. enables the clear and consistent identification of businesses and economic operators across Germany’s public administration system. Assigned for the entire duration of a business’s economic activity, the W-IdNr. remains unchanged even in the event of changes to master data such as business address, legal status, name, or management location.

According to the Federal Central Tax Office (Bundeszentralamt für Steuern – BZSt), the W-IdNr. will be assigned automatically and electronically, without any need for applications or action by affected businesses.

The W-IdNr. consists of the first letters "EN" and a 9-digit sequence of digits.

Key Differences Between Germany’s Steuernummer, Germany’s VAT Identification Number (USt-IdNr.) and the New Economic Identification Number (W-IdNr.)

The Steuernummer is issued by the local tax office (Finanzamt) and is required for any individual or entity—resident or non-resident—with tax obligations in Germany. It is typically a 13-digit number and is required on invoices and in communication with German tax authorities.

Despite the introduction of the W-IdNr., the Steuernummer remains valid and unchanged and continues to serve its current function.

Tax returns must still be filed using the Steuernummer, and this also applies to forms submitted to the Federal Central Tax Office (BZSt). The integration of the W-IdNr. into electronic tax forms is underway, but its use is not mandatory until December 31, 2026.

The Umsatzsteuer-Identifikationsnummer (USt-IdNr.), commonly known as the VAT Identification Number, is issued by the Federal Central Tax Office (Bundeszentralamt für Steuern – BZSt). It is primarily used for cross-border transactions within the EU. Only businesses involved in intra-EU trade, especially in B2B contexts, are required to have a USt-IdNr. The number follows a specific format beginning with “DE” followed by nine digits (e.g., DE123456789). It must be clearly indicated on invoices related to intra-community operations.

The newly introduced W-IdNr. is structurally similar to the VAT ID number but includes a five-digit suffix (e.g., -00001, -00002) to distinguish multiple identifiers if applicable. In cases where a business already holds a VAT ID number, that same number will also serve as the W-IdNr.

It is important to note that the Steuernummer and the VAT Identification Number serve distinct purposes

Let's take an example

A non-profit organization that is organizing a conference in Germany and charges for access to that event should obtain a Steuernummer because it is engaging in taxable activities in Germany. However, it does not need and cannot obtain a VAT number if it is not involved in cross-border B2B transactions or intra-community supplies.

Beware: The Steuernummer does NOT appear in the VIES database.

A Belgian company that regularly purchases goods from suppliers in other EU countries and stores them in a German warehouse for later sales should obtain a VAT number in Germany to account for intra-community acquisitions after obtaining its Steuernummer.

Both the non-profit organizing a conference in Germany and the Belgian company operating a warehouse in Germany will be required to have a Wirtschafts-Identifikationsnummer (W-IdNr.).