The German tax authorities have issued updated guidance stressing the importance of submitting applications for VAT identification numbers (USt-IdNr.) in a timely manner, particularly in light of upcoming administrative changes. This guidance is especially relevant for businesses engaged in cross-border transactions within the European Union. As processing delays are expected due to the introduction of the new Wirtschafts-Identifikationsnummer (W-IdNr.), timely application for the USt-IdNr. is crucial to ensure smooth VAT handling and compliance with German and EU tax regulations.
Key points to consider:
- Introduction of the Wirtschafts-Identifikationsnummer (W-IdNr.):
Beginning in November 2024, the Federal Central Tax Office (BZSt) will start issuing W-IdNr. to all economically active entities. This will be done in stages and automatically. - Potential delays in issuing USt-IdNr.:
Since the issuance of the W-IdNr. will use company data stored for the USt-IdNr. at the BZSt, technical limitations will prevent updates to company data during the transition period. As a result, there may be longer processing times for USt-IdNr. applications in November 2024, particularly for group companies (Organgesellschaften). - Delays lasting several months:
The disruptions could last for several months, so it is highly recommended to submit USt-IdNr. applications as early as possible, especially for businesses that plan to operate or expand cross-border activities within this timeframe. - Recommendations for early application:
To avoid potential delays, we recommend submitting USt-IdNr. applications in advance, ideally when you register for VAT with the tax office (using the “Fragebogen zur steuerlichen Erfassung”). - No impact on certain services:
The expected delays will not affect applications for entering or changing a Euro address for sole proprietorships or the filing of powers of attorney for the VAT control procedure (UStKV). Additionally, the VAT number confirmation procedure will remain unaffected. - Summary reports unaffected:
Businesses can continue to submit their EU sales lists (Zusammenfassende Meldungen) as usual, even during the transition period.
By following these guidelines and applying early, businesses can mitigate disruptions and ensure smooth VAT compliance during this period of administrative change.
For further questions or assistance with VAT matters, WW+KN, a Baker Tilly Company, is available at info@vat-germany.com.