In October 2022, the European Commission introduced a revised version of the NACE classification codes. This significant transition started on January 1, 2025, and will be completed by the end of March 2025.
All members of the European Statistical System (ESS) are required to adopt NACE Rev. 2.1 to ensure consistency in statistical reporting and analysis across the EU. This transition aims to enhance the accuracy and relevance of economic activity classifications throughout Europe.
Understanding NACE Codes: The EU’s System for Classifying Economic Activities
NACE (Nomenclature of Economic Activities) is the European statistical classification system used by countries in the European Union (EU) to systematically categorize economic activities. This classification provides a framework for collecting, organizing, and presenting data related to various industries, allowing for consistent statistical analysis across different countries and financial sectors.
- Sections (1st level): Broad categories such as Manufacturing, Construction, or Financial Services.
- Divisions (2nd level): More specific industry groups, like manufacture of military fighting vehicles or constructions of buildings.
- Groups (3rd level): Further refined industry subcategories.
- Classes (4th level): The most detailed level, specifying precise economic activities.
Since 1970, various NACE versions have been introduced, but until the end of 2024, EU countries continued using the codes established in 2008.
Understanding the purpose of the transition to NACE Rev. 2.1
One of the main reasons for transitioning to NACE Rev. 2.1 is to ensure the accuracy and stability of the correspondence tables that map NACE Rev. 2 codes to NACE Rev. 2.1 codes. These tables are crucial for converting historical data to the new classification system. Currently, these tables undergo frequent updates to reflect ongoing refinements in the classification. Organizations and statistical bodies are encouraged to monitor these updates closely to maintain data accuracy.
What are the key changes in the NACE classification update for 2025?
The transition from NACE Rev. 2 to NACE Rev. 2.1 enhances the classification system by:
1) Changing the number of structures across all four classification levels
2) Introducing new categories
3) Eliminating and merging outdated categories
4) Modifying existing categories
This transition helps ensure that statistical data remains relevant, allowing for more accurate economic analysis and informed policy-making.
Comparison of structures - NACE Rev. 2 (2008-2024) and NACE Rev. 2.1 (2025- )
|
Classification level |
NACE Rev. 2 | NACE Rev. 2.1 | ||
| Code | Number of categories | Code | Number of categories | |
| Section | A - U | 21 | A - V | 22 |
| Disivion | 01 to 99 | 88 | 01 to 99 | 87 |
| Group | 01.1 to 99.0 | 272 | 01.1 to 99.0 | 287 |
| Class | 01.11 to 99.00 | 615 | 01.11 to 99.00 | 651 |
Examples of the changes within categories of the NACE Rev. 2.1 Classification Table
- Agriculture, Forestry, and Fishing
- Manufacturing
Group 31.0 (Manufacture of Furniture) has been reorganized by merging the following classes into a new class:
- 31.01 (Manufacture of Office and Shop Furniture)
- 31.02 (Manufacture of Kitchen Furniture)
- 31.03 (Manufacture of Mattresses)
- 31.09 (Manufacture of Other Furniture)
The new class is designated as 31.00 (Manufacture of Furniture).
- Electricity, Gas, Steam, and Air Conditioning Supply
Group 35.1 (Electric Power Generation, Transmission, and Distribution) has been reorganized to create new classes:
- 35.11 (Production of Electricity from Non-Renewable Sources)
- 35.12 (Production of Electricity from Renewable Sources)
- 35.16 (Storage of Electricity)
A new class, 35.24 (Storage of Gas as Part of Network Supply Services), has also been established.
- Transportation and Storage
- 49.11 (Passenger Heavy Rail Transport)
- 49.12 (Other Passenger Rail Transport)
- Financial and Insurance Activities
- 64.21 (Activities of Holding Companies)
- 64.22 (Activities of Financing Conduits)
Group 64.3 has also been divided into two classes:
- 64.31 (Activities of Money Market and Non-Money Market Investment Funds)
- 64.32 (Activities of Trust, Estate, and Agency Accounts)
Find the NACE Rev. 2.1 and view all the changes by clicking here.
Latest 2025 Updates to the October 2022 Version of the NACE Rev. 2.1 Classification Table
1. New Categories Added:
- Education Sector:
New categories were introduced to refine the classification of education services.
Example: More specific training or online learning subcategories added.- Information and Communication Technology (ICT):
New codes for emerging digital industries.
Example: Classification for AI-driven services or cloud computing enhanced.- Renewable Energy & Environmental Services:
Expanded categories for green energy initiatives.
Example: New classifications for hydrogen energy, solar panel recycling, and carbon capture technologies.2. Removed Categories:
Some outdated industries or merged categories were eliminated.
Examples: Older telecom infrastructure classifications merged into broader IT services.
Legacy industrial production categories no longer in common use removed.
3. Significant Modifications in Classification:
- Retail & E-commerce:
- Financial Services:
- Logistics & Transport:
Find here the table with the most recent updates.
Current Status of the Transition
The transition process is actively underway, with countries working to implement NACE Rev. 2.1 by 2025. This process includes updating national classification systems, training personnel, and adjusting data collection and processing methodologies to align with the new classification.
Staying informed through these resources is crucial for organizations and individuals involved in economic data collection, analysis, and reporting during this transition period.
As previously announced, the European Commission can still modify the new NACE Rev. 2.1 classification until April or May of this year. The conversion date for VAT activities has not yet been determined.
If you're looking to convert a NACE code to a SIC code to find an equivalent, you can use our free converter.
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