Since November 2024, companies in Germany have gradually been assigned a business identification number (Wirtschafts-Identifikationsnummer, W-IdNr.) by the Federal Central Tax Office (BZSt). This new number is used for unique identification in the taxation procedure and for the efficient and secure transmission of company data to tax authorities and other government agencies (Sections 139a and 139c German Tax Code (AO)). The business identification number also aims to reduce the administrative workload and simplify the handling of tax processes, particularly in international trade. It is especially important for companies active in e-commerce. The business identification number is made up of the country code “DE” and a nine-digit number sequence. It does not replace the tax ID (Steuer-ID) or the VAT identification number (USt-IdNr.).
What does the new number mean for your company? The details at a glance:
Who needs the business identification number and how is it allocated?
Since November 2024, every company based in Germany, whether a sole proprietorship, “GmbH” (limited liability company), or “Aktiengesellschaft” (joint stock company), has automatically received a business identification number from the Federal Central Tax Office. This number is assigned permanently and remains the same even if the company changes its legal form or address. Companies do not need to apply for a number to be allocated: new companies in the company register are automatically notified of their business identification number; existing companies will gradually receive the number by post or electronically via their ELSTER account. If there are any delays or problems, the Federal Central Tax Office is the authority to contact. If a company changes its address or name, it should notify the tax office immediately to prevent delay to the allocation of the business identification number.
The business identification number must be included in the legal notice – and what else?
In future, companies must include the new business identification number in the legal notice on their website (Section 5 (1) No. 6 German Digital Services Act (DDG)). This aims to promote transparency and simplify the exchange of data with authorities. If a company operates its website in multiple countries, the business identification number also makes it easier to identify and allocate the company in an international context. For companies active in international e-commerce, this will make the processing of tax obligations much simpler.
With the entry into force of the new German Digital Services Act (formerly the German Telemedia Act (TMG)) on May 14, 2024, further regulations on the legal notice obligation were laid down (Section 5 German Digital Services Act). Accordingly, companies must provide the following information and adapt it if necessary to be on the safe side legally:
- Name and address of the company: in the case of legal entities, additionally the legal form and the authorized representative.
- Supervisory authority, if official authorization is required.
- Commercial register details, including commercial register number.
- Professional information: for regulated professions, e.g. chamber membership and legal professional title.
- Contact information: an e-mail address and a quick means of contact, e.g. telephone or contact form.
- Business identification number (see above) and VAT identification no.
- Information on the company in liquidation or winding-up: for corporate entities such as joint stock companies or limited liability companies.
- Further mandatory information for audiovisual media services: country of domicile and regulatory authorities.
All of this information must be placed prominently on the website and must not be hidden behind links that are difficult to find. Labeling as “Legal Notice” or “Contact” is common and sufficient. What is important is that the information is easily accessible at all times and can be found without any significant intermediate steps, regardless of the end device used (e.g. mobile device). This means that direct access (maximum of two clicks) to the legal notice must also be possible from the website’s subpages. Unnecessary barriers must be avoided. Placement at the bottom of the website (footer) is still permitted as long as the link is clear and easy to find. Anyone referring to the provisions of the German Telemedia Act in the legal notice must amend this and instead mention the new German Digital Services Act.
Picture credits: peterschreiber.media_AdobeStock.com
