Steuernummer in Germany. What is it and how to get it?

Going to work in Germany means that the employee will receive from the Finanzamt (German tax office) several numbers that are important for tax settlements in Germany. One of them is the Steuernummer, i.e. the German tax number. There is often a misconception that this number is irrelevant to people working in this country. Nothing could be further from the truth!Steuernummer is a key element without which proper tax settlement is impossible.

Steuernummer – what is it?

This is a special tax number in Germany, which is the equivalent of the Polish NIP. These are thirteen digits thanks to which the tax office can quickly identify taxpayers. In addition, assigning the appropriate tax returns submitted each year to them. The taxpayer must always enter it in the tax return and in documents relating to all other formal matters related to taxes.

What’s more, the steuernummer has often been broadcast in Germany many times over the years. Why?A taxpayer may change the tax office competent for his/her place of residence, set up a company under a different tax number or settle joint taxes with his/her spouse. These are examples of situations where the Finanzamt issues a new tax number.

How to get a Steuernummer?

Are you planning to go to Germany for work purposes? You will need a steuernummer! The Steuernummer is mainly needed by people who work professionally in Germany and are subject to tax in this country. It is also important for entrepreneurs running a business.

Fortunately, the procedure for obtaining it is not too complicated. It only requires meeting a few conditions. The first and most important of these is registration as a resident of Germany. Then, you must apply for a tax number at the appropriate tax office. This application must include basic information such as your name, home address, date of birth and tax identification number (if you have one). After submitting your application, the tax office will verify your details and if everything is in order, you will receive your Steuernummer number.

Tax number (Steuernummer) and tax identification number (Steuer-ID)

In Germany, the Steuernummer is commonly confused with the tax identification number – Steuer-ID (Identifikationsnummer). It is given to every citizen at birth. As we have already mentioned, the steuernummer in Germany is the equivalent of the Polish NIP. The tax identification number is the equivalent of the Polish PESEL. What’s more, Steuer-ID, unlike Steuernummer, is assigned once for life – it is not possible to change it. Therefore, the terms “tax number” and “tax identification number” should not be used interchangeably because they are not the same.

Why is Steuernummer crucial for employees?

Legality of employment. Having a Steuernummer is a necessary condition for taking up legal work in Germany. The employer requires this number to be able to properly register the employee in the tax system and, in accordance with applicable regulations, calculate and pay income tax advances and social security contributions. Without this number, you cannot start work or receive remuneration because your employment will not be considered legal.
Tax settlements. Steuernummer is necessary for the correct settlement of income taxes. In Germany, taxes are calculated based on the income earned by the employee, and the Steuernummer allows you to correctly assign the taxes paid to the appropriate taxpayer. Without this number, you cannot file a tax return or get a refund of overpaid taxes.
Tax credits and deductions. The German tax system offers various reliefs and deductions, such as child tax relief, tax deduction tax relief and donation tax relief. To take advantage of these reliefs, you must have a Steuernummer, which allows you to enter data into the tax system and correctly calculate the reliefs due. Without this number, the employee will not be able to submit appropriate applications or receive tax benefits.
Bank formalities and contracts. Steuernummer is also important for various financial formalities, such as opening a bank account. Banks and financial institutions in Germany require this number for tax identification and income verification purposes. Similarly, when concluding an employment contract, the number is necessary for the correct preparation of documents and registration of the contract in the tax system.

Summary

Having a Steuernummer is not only a legal obligation, but also a key element enabling proper and effective functioning in the German tax system. Therefore, anyone planning to work in Germany should obtain it as soon as possible to avoid problems and delays in the future.