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What is the difference between a tax number and a VAT ID, and why do I need them?

In this article, you'll learn the difference between a tax number and a VAT Identification Number (VAT ID).

There are two numbers that are important for you as a self-employed person on yoummday. The tax number and the VAT number (or VAT ID).

 

Explanation of the different numbers

 

Tax number

The tax number is issued by the relevant tax office.

You will find it on your tax assessment notice if you have already filed a tax return, but you can also ask for it at the tax office.

 

Turnover tax identification number / VAT ID

The VAT ID number is used to identify companies in the EU.

The VAT ID consists of a country code followed by up to twelve digits.

In Germany, it can be applied for in addition to the tax number, either directly when applying for the tax number or subsequently online at the Federal Central Tax Office.

In other EU member states, the application procedure may vary and a separate registration of the tax number may be necessary.

For entrepreneurs from third countries (non-EU) the number is not relevant.

 

Your tax advisor can advise you in detail on this topic!

As a self-employed professional working through yoummday, there are two important tax-related numbers you should be aware of:

  • Tax Number
  • VAT Identification Number (VAT ID)

You obtain these numbers in your billing country, meaning the country where you are registered as a freelancer.

There are separate fields in your yoummday account where you can enter each of these numbers.

Important: Your tax number is used for identification purposes and does not directly determine whether you are required to pay taxes or how much tax you owe.

If you have any questions regarding tax obligations or obtaining tax numbers, please contact a local tax advisor or your competent tax authority.

 1. Tax Number

The tax number is issued by the tax authority responsible for your place of registration.

You can usually find it:

  • On your tax assessment notice if you have previously filed a tax return, or
  • By contacting your tax office directly.

Important

The tax number is mandatory for all talents on the yoummday platform.





 2. VAT Identification Number (VAT ID)

The VAT Identification Number (also called VAT ID, VAT Number, or USt-ID in Germany) is used to identify businesses within the European Union.

A VAT ID consists of:

  • A country code (e.g., DE, FR, ES, IT)
  • Followed by a sequence of up to twelve digits

For freelancers in Germany

In Germany, a VAT ID can be requested:

  • When applying for your tax number, or
  • Later through the Federal Central Tax Office (Bundeszentralamt für Steuern).

For freelancers in Other EU Countries

The registration process may vary depending on the country.

In some EU member states, obtaining a VAT ID may require a separate registration procedure.

When is a VAT ID Required?

If your billing address is within the European Union but outside Germany, a VAT ID is generally required.





When is a VAT ID not required?

A VAT ID is generally not relevant for freelancers based outside the EU.

If your billing address is in Germany, obtaining and entering a VAT ID on the platform is not necessarily mandatory.