The German tax system uses three similar-sounding terms, and mixing them up regularly causes delayed salary payments and errors in invoices. Each number has a specific purpose.

Your lifelong tax identification number (Steuer-ID)

The Steuer-ID is a permanent 11-digit number that the Federal Central Tax Office (BZSt) assigns to each person once in their lifetime. It is generated automatically after you first register an address in Germany and sent to you by post. Your employer needs it to process your salary.

Your tax number at the local tax office (Steuernummer)

The Steuernummer has 10 to 13 digits depending on the format and belongs to a specific local tax office (Finanzamt). It is issued when you file your first tax return, start a business or begin freelance work. If you move to an area covered by a different tax office, it changes.

The EU VAT identification number (USt-IdNr)

The USt-IdNr starts with “DE” followed by nine digits. The BZSt issues it to businesses and self-employed people for trade within the EU, for example under the reverse charge procedure between businesses. It is one of the mandatory details on invoices and in a website's legal notice (Impressum), if you have one.

When to give which number

You give your Steuer-ID to your employer, your bank (for the tax exemption order, Freistellungsauftrag) and the pension insurance. You quote your Steuernummer in correspondence with your tax office and in tax returns. The USt-IdNr appears in your website's legal notice and on invoices to business customers.

What to check

  • Expect the letter from the BZSt with your Steuer-ID two to four weeks after registering.
  • Give your 11-digit Steuer-ID to your employer's payroll department so that tax class 6 is not applied.
  • Apply for a Steuernummer through ELSTER when you start any business or freelance activity.
  • On invoices to business customers in other EU countries under reverse charge, state both your own and the customer's VAT ID.

Example situation

A programmer receives his Steuer-ID by post and passes it on to HR; when he starts additional freelance IT work, he applies through ELSTER for a tax number for his advance VAT returns.

Next step

Everyone has a Steuer-ID and it never changes; the Steuernummer is issued by your local tax office for returns; the USt-IdNr is needed for business within the EU.

Official information on this topic

Checklists and examples are organisational recommendations. Requirements depend on the procedure, the city and your situation; check them with the relevant office before you act. Please discuss legal and tax questions with an authorised professional.

This article was prepared with the help of AI. The example illustrates the approach and does not describe a client case.