Tax & Law
VAT Identification Number (VAT ID)
Definition
The VAT Identification Number (VAT ID) is an EU-wide unique identifier for VAT-registered businesses. In Germany it begins with the country code 'DE' followed by 9 digits (e.g., DE123456789). On electronic invoices, the seller's VAT ID is stated in BT-31 and the buyer's in BT-48. It is essential for evidencing cross-border tax-exempt supplies.
Switch to German:Umsatzsteuer-Identifikationsnummer (USt-IdNr.) (DE)
Related terms
VAT (Value Added Tax)VAT (Value Added Tax), known in German as Umsatzsteuer (USt) or Mehrwertsteuer (MwSt), is a consumption tax on supplies of goods and services. In Germany the standard rate is 19% and the reduced rate is 7%. Electronic invoices under EN 16931 must state the VAT amount (BT-110), tax rate (BT-152), and taxable base amount (BT-116) for each tax breakdown.Tax Number (Steuernummer)The Steuernummer is an identifier assigned by German tax authorities to individuals and legal entities within Germany. It is state-specific and consists of 10 to 13 digits. On electronic invoices, the seller's Steuernummer can be provided in BT-32 (instead of or in addition to the VAT ID). Unlike the VAT ID, the Steuernummer is not valid EU-wide.Reverse ChargeUnder the reverse charge mechanism, the VAT liability is shifted from the supplier to the recipient of the supply. In Germany it applies to, among other things, certain construction services, metal supplies, and all cross-border B2B services within the EU. On electronic invoices, the VAT category code AE (BT-151) must be used, and a reference to the legal basis (e.g., § 13b UStG) should appear in the invoice text.Business Term (BT)A Business Term (BT) is a single, semantically defined data element of the European standard EN 16931. Each Business Term has a unique number (e.g., BT-1 for the invoice number, BT-9 for the payment due date), a name, a definition, and cardinality rules. Business Terms are syntax-independent and are mapped to different XML elements in UBL and CII.