Apply for an VAT ID in Germany

Applying for Your Readymade's VAT-ID

Many have heard about this number, but do you really know what it's about? There are three main practical reasons for needing a VAT-ID. They are:

  1. for business / invoicing purposes with other businesses inside EU,
  2. inside of Germany, to identify your business as tax registered in web shops,
  3. as "tax number" on your invoice.

The only catch obtaining a VAT-ID is that you have to be a VAT registered business. Currently, your company's tax status is "inactive". Remember, we guarantee a virgin company; therefore a VAT-ID cannot come with your company. You will usually get around two weeks after the tax office has digested the setup. The advantage of using the VAT-ID for invoicing purposes is that it never changes, in contrast to your domestic tax number. When you relocate your business into the jurisdiction of another tax office, the tax number always changes – the VAT-ID remains the same. When you invoice other European businesses using their VAT-ID, then you are to apply the "reverse charge system" and your invoice is cheaper.