What is a sales tax identification number (VAT ID no.) needed for? How do I obtain this? What special features do I need to bear in mind?

Companies that provide or receive goods and services within the European Single Market require a VAT identification number (VAT ID number) for processing.

The VAT ID number is required for the following situations, among others:

• The company delivers goods to the rest of the Community
  (intra-Community delivery),
• the company acquires goods from the rest of the Community
  (intra-Community acquisition)
• the business carries out a supply within the meaning of Section 25b (2) UStG
  (intra-Community triangular transaction),
• the company carries out a transport or dispatch within the meaning of Section 6b (1) no. 4 UStG
  (consignment stock regulation),
• the company provides taxable other services in the rest of the Community for which the recipient of the service is liable to pay tax,
• the company makes use of other services from a trader based in the rest of the Community.

Further detailed information on the VAT ID number can be obtained from the Federal Central Tax Office. There you can also watch a video tutorial on how to apply for a VAT registration number.