The new business identification number (W-IdNr.)

In November 2024, the Federal Central Tax Office (BZSt) began preparing the new Business identification numbers (W-IdNr) to be awarded. This is based on Section 139c of the German Fiscal Code (AO), which is intended to regulate and promote the digitization of tax administration. Anyone who has not yet received a notification need not panic. The allocation process will take two years. This means that all companies in Germany should receive the new W-Id no. by the end of 2026. Many people are probably asking themselves: "Another tax no.? What's in store for me?". fynax enlightens you.

New number - what's behind it?

Good news in advance. The W-IdNr. does not have to be applied for, but has been assigned by the BZSt without application since November 2024. This takes place in several stages and can be done in a public Announcement of the BZSt can be read. Anyone who was issued a VAT identification number (VAT ID no.) before 30.11.2024 will not receive a separate notification, as the VAT ID no. in these cases corresponds to the W-IdNr. and can be used accordingly since 03.12.2024. In a later step, this will be supplemented by the distinguishing feature. For newly founded companies, the number is assigned immediately. It remains permanently and is therefore independent of changes of location or name. This makes it easier to assign a company in official processes. The tax identification number for natural persons (IdNr.), the tax number and VAT identification number (USt-IdNr.) are not (initially) replaced by this.

The W-IdNr. is used to uniquely identify all economic activities in Germany and is issued to natural persons (sole proprietors, freelancers) and legal entities (GmbH, AG, association) as well as partnerships (GbR, OHG, KG). It is comparable to the private (also unchangeable) tax identification number, which every natural person in Germany receives.

The structure of the W-Id no. is clearly regulated - for German companies it begins with the letters DE followed by nine digits. In addition, a five-digit distinguishing feature is separated by a hyphen to identify different permanent establishments or activities. Together this can look like this, for example: DE999999999-00001.

Digitization and reducing bureaucracy

The new number is intended to drive forward the digitalization of tax administration and reduce bureaucracy. This is also where the Basic register for companies at the Federal Statistical Office. For the first time, this makes it possible to retrieve company data from a central location and thus offers great potential for reducing bureaucracy within the German administration. The data is reported to the central register from existing administrative registers and entrepreneurs do not have to make any additional entries. Together with the W-IdNr., these are important components of the once-only principle, which is intended to avoid multiple reporting of data.

The main aim is therefore to create a more digital administration with greater efficiency and transparency in data exchange between companies and authorities, for example to record and process applications and notifications more quickly. Communication with authorities across national borders is also to be significantly simplified. One advantage here is certainly the central allocation by the BZSt and not, as with other numbers, by the local authorities.

Anyone who has already received the W-IdNr. should always include it when notifying the authorities of changes. It is also advisable to enter the number in the accounting software immediately. If you have not yet received the W-IdNr., this is no cause for concern. All areas in which it will be mandatory in the future can still be covered with the existing data. In the long term, the W-IdNr. could and (from a business perspective) should at least partially replace existing identification numbers in order to ensure further simplification.

Conclusion

In conjunction with other measures, the W-IdNr. will boost the digitalization of public authorities and the reduction of bureaucracy in Germany. This is very welcome, as other European countries are already much better positioned in this area. With the introduction of the once-only principle, there is hope for a noticeable administrative relief for entrepreneurs.

On the website of the Federal Ministry of Finance you will find further information on how the FAQ on the topic. You can also download a digital flyer download.