Germany has one of Europe's largest economies and is a major trading partner for businesses across the EU. Understanding German VAT numbers is essential for anyone conducting business with German companies. This guide explains the German VAT identification system, the correct format for validation, and important considerations unique to Germany.
The German VAT identification number, known as the Umsatzsteuer-Identifikationsnummer (USt-IdNr), follows this format:
DE + 9 digits
Example: DE123456789
The format is straightforward: the country code DE followed by exactly 9 numeric digits. There are no letters within the number itself, no separators, and the total length is always 11 characters. The ninth digit is a check digit calculated from the preceding eight digits using a specific algorithm.
Germany uses two distinct tax identification systems, which often confuses businesses dealing with German companies for the first time. Understanding the difference is crucial for correct VAT handling.
The USt-IdNr is the VAT identification number used specifically for intra-community transactions within the EU. This is the number that appears in VIES and is used for cross-border B2B trade. It always begins with DE and is issued by the Federal Central Tax Office (Bundeszentralamt für Steuern, or BZSt). When dealing with German businesses for EU trade, you need this number.
The Steuernummer is a domestic tax number used for German VAT returns and other tax matters within Germany. It has a completely different format based on the federal state where the business is registered, typically appearing as a sequence like 123/456/78901. This number cannot be validated through VIES and should not be used for intra-community invoices.
If a German business provides only a Steuernummer, ask specifically for their USt-IdNr for EU trade purposes. Not all German businesses automatically receive a USt-IdNr—they must apply for one if they wish to conduct intra-community transactions.
German VAT numbers can be validated through VIES like any other EU VAT number. However, Germany has a unique limitation: due to German data protection law, VIES does not return company name and address information for German VAT numbers.
When you validate a German VAT number, VIES returns only whether the number is valid or invalid. You will not see the registered company name or address in the response. This differs from most other EU countries, where successful validation displays full company details.
This limitation means you cannot use VIES validation alone to confirm that a German VAT number belongs to a specific company. The valid result confirms only that the number exists in the German tax system, not who it belongs to.
If you need to confirm that a German VAT number belongs to a specific company, you have several options:
You can submit a written request to the BZSt asking them to confirm whether a specific VAT number is associated with a particular company name and address. The BZSt will respond confirming whether the details match or do not match, without disclosing what the correct details are. This process takes time—typically several days to a few weeks—but provides official confirmation.
German companies registered in the commercial register can be searched through the Unternehmensregister (company register) at unternehmensregister.de. While this does not show VAT numbers directly, you can verify company existence and details, then cross-reference with the VAT number your customer provided.
Request a copy of the customer's VAT registration certificate or recent correspondence from the tax authorities showing their USt-IdNr. Legitimate businesses will have documentation confirming their VAT number assignment.
German businesses obtain their USt-IdNr by application to the BZSt. The process requires the business to already be registered for domestic VAT through their local tax office (Finanzamt). Once they have a Steuernummer and are registered for VAT, they can apply for a USt-IdNr for intra-community purposes.
New businesses may not have a USt-IdNr immediately upon starting operations. There can be a processing delay between requesting the number and receiving it, and then a further delay before it appears in VIES. If a German customer's number does not validate and they claim to be newly registered, ask when they applied for the USt-IdNr and allow time for processing.
The most common problem is receiving a Steuernummer instead of a USt-IdNr. Steuernummern have formats like 12/345/67890 or 123/456/78901 depending on the federal state. These cannot be validated through VIES. If you receive a number in this format, request the DE-prefixed USt-IdNr instead.
Small businesses or those conducting only domestic trade may not have applied for a USt-IdNr. In this case, they cannot participate in zero-rated intra-community trade. You would need to charge German VAT on your supply (requiring you to register for German VAT) or the transaction may fall under different rules depending on circumstances.
Remember that valid German VAT validation does not prove you are dealing with a specific company. For high-value transactions, supplement VIES validation with additional verification methods described above.
For reference when applying reverse charge, Germany's current VAT rates are:
Apply the appropriate rate when self-assessing VAT on purchases from German suppliers through reverse charge.
