VAT number and EORI number in Germany

When do you need a VAT number in Germany? Under which conditions should you get an EORI number for your business in Germany? What is the difference between these two numbers? In this article from Wise Business Group, we will review the VAT number and EORI number in Germany and explain the differences.

VAT number in Germany

When a company sells or buys goods or services in one of the European Union (EU) countries, it must apply for a sales tax identification number (VAT number). VAT number is also known as value-added tax number.

Applying for a VAT number in Germany

The application for the VAT ID number in Germany is only necessary if the company does not pass on the sales tax directly to the end consumer. It means that if a company shows sales tax in its invoices, it must apply for a VAT ID number.

However, applying for a VAT ID number for a company considered a small business owner in Germany and is therefore exempt from sales tax is not mandatory. However, in this case, the company cannot get the sales tax and thus cannot claim any input tax.

It is important to note that the exact rules and requirements for applying for a VAT number may differ from country to country. It is, therefore, advisable to check the tax regulations of the country where the company operates to ensure all requirements are met.

Read more on Wise Business Group: Tax System in Germany

EORI number in Germany

When you import/export goods within the EU, you need an EORI (Economic Operators Registration and Identification) number. The EORI number is a unique identification number issued by the customs authorities of each EU country.

The EORI number is necessary to carry out customs formalities and to ensure that all required tax and customs regulations in Germany are met. Without an EORI number, there may be delays in the customs process and possibly additional costs.

Companies intending to import or export goods within the European Union can apply for an EORI number.

VAT number and EORI number are both identification numbers required for trading within the European Union.

The difference between the VAT number and the EORI number in Germany

The EORI number is required to import or export goods within the EU. It serves as a unique identification number for the economic operator, and the customs authority of the respective EU country issues it.

On the other hand, a Value Added Tax Identification Number (VAT ID) is necessary for trading goods and services within the EU. It simplifies and regulates sales tax payments and refunds between different EU countries. The responsible tax authority of the respective EU country issues the VAT number.

In contrast to the EORI number, which is only necessary for the import/export of goods, you need a VAT ID for all business activities within the EU that are subject to VAT.

Read more on Wise Business Group: Establishing an import-export company in Germany

VAT number and EORI number in Germany

The VAT and EORI numbers are the IDs required for trade in the EU. Their general specifications are as follows:

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