What you'll learn here

• What the VAT ID is and how it differs from the tax number
• Who really needs a VAT ID
• The two ways to apply, step by step
• Whether this works with a rented business address
• What to watch out for in terms of processing time, delivery and costs

VAT ID and tax number: not the same thing

Both numbers are issued by the state, but they serve different purposes. You get your tax number (Steuernummer) from your tax office and use it for your regular tax return and for invoices to German customers.

You need the VAT identification number (USt-IdNr.) for cross-border trade within the EU. It starts with "DE" and uniquely identifies your business in transactions with companies in other EU countries. It is issued not by the tax office but by the Federal Central Tax Office (BZSt).

Who needs a VAT ID

A VAT ID is useful or necessary if you:

• sell goods or services to businesses in other EU countries (intra-Community supplies)
• buy from EU suppliers and use the reverse charge procedure
• sell in several EU countries through marketplaces such as Amazon FBA
• offer digital services to business customers in the EU

Small business owners (Kleinunternehmer) under Section 19 of the German VAT Act (UStG) can also apply for a VAT ID as soon as they do business with other EU countries. For purely domestic business, you don't necessarily need one.

Option 1: Apply via ELSTER when setting up your business

If you are registering your business right now, the VAT ID is taken care of automatically along the way. The tax registration questionnaire, which you submit to your tax office via ELSTER, has a dedicated field for it. Simply tick the box saying that you want a VAT ID.

Your tax office then automatically forwards the request to the BZSt. It can take a few weeks from your submission to the tax office until the request is forwarded, because the number can only be assigned once your tax registration is complete.

Option 2: Apply later, directly with the BZSt

Already registered your business and only need the VAT ID now? Then apply for it directly with the Federal Central Tax Office, online via the BZSt portal. For this, you need:

• your tax number
• the responsible tax office
• the name and address of your business

The BZSt checks the details against those held by your tax office. If everything matches, the number is assigned. The same applies here: The number can only be assigned after you are registered for tax and your data has been sent to the BZSt.

Does this work with a rented business address?

Yes. For the VAT ID, what counts is the business address on file with your tax office, and that can be a rented, legally valid (ladungsfähig) address, meaning an address where authorities and courts can officially serve documents on you. You enter it as your business address in the tax registration questionnaire and then use it on invoices and in your imprint (legal notice, German: Impressum).

One point is important here and, to be honest, crucial: In the questionnaire, you must truthfully state your actual place of management (Ort der Geschäftsleitung) if you don't work on site at the rented address. This information is only for the tax office and ensures that your taxes are calculated correctly. So the rented address protects your privacy from the outside world, but it does not replace correctly stating your place of work to the tax office.

Processing time, costs and common pitfalls

• Costs: The VAT ID is completely free. Providers that charge money for it are unnecessary. You don't need them.
• Processing time: Assignment can take up to two months. Plan for this before your first EU transaction.
• Delivery: By mail only. Make sure you have a reliable address.
• Prerequisite: You must be registered for tax with your tax office; otherwise, the BZSt cannot assign the number.

Your address with Geschäftsadressemieten

With an address at Pappelallee 64, 10437 Berlin, you get a legally valid business address in Prenzlauer Berg that you can use in the tax registration questionnaire, on invoices and in your imprint. More than 1,000 customers already rely on it. Everything is set up in about five minutes, with no setup fee, and you can cancel monthly.

With the Pro and Expert packages, your mail is scanned daily with a date-of-receipt stamp and sent to you by email. That way, you'll see the BZSt letter with your VAT ID right away, even if you're not based in Berlin.

Conclusion: Yes to the VAT ID, even with a rented address

Applying for a VAT ID is straightforward and free, whether via the questionnaire when you set up your business or later directly with the BZSt. A rented, legally valid business address doesn't stand in the way, as long as you correctly state your actual place of work to the tax office. All that matters is that official mail from the authorities reliably reaches you.

Frequently asked questions

Further reading

• Virtual Office for E-Commerce: Why Amazon, Shopify and eBay Sellers Need a Business Address
• Business Address for Your Business Registration: What You Really Need
• Deducting a Virtual Office from Your Taxes: What Founders Need to Know