The economic identification number (W-ID number) is a clear identification for companies and economically active people in Germany. It serves for tax identification and is intended to replace the previous tax charges in the long term, in particular the tax number for companies.
The basics of the economic identification number
The introduction of the economic identification number (W-ID number) is part of a comprehensive modernization of the German tax system and is intended to enable more efficient administration. It was introduced with the tax bureaucratic reduction law to simplify the tax identification system. Similar to the tax identification number (IDNr.) For private individuals, the W-ID no. Sure, that every company or every economically active person is clearly recorded. Among other things, this should prevent duplication of tax numbers and simplify communication between companies and the tax authorities.
The W-IDNr. is awarded by the Federal Central Tax Office (BZST) and accompanies the company or the economically active person permanently – regardless of changes such as changes or change of the responsible tax office.
Who needs an economic identification number?
The W-IDNr. is aimed at companies, independent and economically active natural persons who need tax registration. These include:
– traders and freelancers
– Corporations such as GmbHs and stock corporations
– partnerships such as OHGs or KGS
– sole trader and small entrepreneur
– Legal persons on public law, if they are economically active
The aim is to optimize the tax administration for companies of all size. While each tax office has been awarded its own tax number so far, the W-ID no. A nationwide uniform identifier.
Who needs an economic identification number?
Companies and economically active people receive the W-IDNr. Automatically by the Federal Central Tax Office as soon as a tax registration takes place. This usually happens:
– When registering
– By registering a freelance work at the tax office
– When founding a corporation or partnership
The allocation of the W-IDNr. takes place by post and is free. It is not necessary to make a separate application.
Advantages of the economic identification number
The introduction of the W-Idnr. brings with it some advantages:
1. Better traceability: Companies have a uniform tax identification number that remains valid across the entire business.
2. Facilitation of tax administration: tax offices and companies benefit from a standardized number that enables more efficient handling of tax processes.
3. Reduction of bureaucracy: The elimination of several tax numbers facilitates communication between companies and the authorities.
4. Improved security: The clear identification of companies can make tax fraud more difficult and make transparency in commercial traffic.
Differences to the tax identification number
While the tax identification number (IDNr.) Applies exclusively to natural persons, the economic identification number (W-IDNr.) Is specially intended for companies and economically active people. Both numbers are valid for life and do not change, even if the company headquarters or the legal form of a company changes.
Another difference is that the W-IDNr. The tax identification number for the personal tax assessment of a private individual is particularly useful for communication between the company and the tax office.
D. Maier / Redaktion Finanzen.net