The note “VAT can be shown” is known from car advertisements. But it is of little relevance to the private sale of cars. Because only entrepreneurs can report the value added tax bring a financial advantage.
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Meaning of “VAT can be stated” in car advertisements
For an entrepreneur, a new vehicle is usually bought at regular intervals and the previous company car is sold as profitably as possible. The note “VAT can be stated” is relevant because you can get the VAT back. But as a private person, VAT cannot be reported, which is important because you have no private obligations in connection with “VAT reportable”. So you don’t have to write VAT invoices if you want to sell your car. The advice is advantageous in order to quickly find the right partner for your business when buying or selling a car. Using the sales tax calculator is important there.
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As an entrepreneur, get VAT back on cars
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The information that VAT can be reported when selling a car is a statement for entrepreneurs of all kinds that the so-called input tax can be deducted when buying a company car. The input tax deduction (also called input tax for short) is, according to the Value Added Tax Act (Sections 15, 15a UStG), the tax that an entrepreneur has to pay to tax offices and which he can then claim back. This possibility exists if he claims the sales tax included in the price on the car as part of his sales tax advance notification. Sales tax is colloquially referred to as sales tax. Accordingly, entrepreneurs can get the VAT back on used cars when they buy a car.
The current VAT rate is usually 19 percent and should only be incurred by the end consumer. Entrepreneurs have to pay the VAT, but are reimbursed as part of the advance VAT return. This advance VAT return lists the VAT that has already been paid, the so-called input tax. As part of the input tax deduction, the entrepreneur can offset the difference between the input tax paid and the value added tax received. This then results in the actual sales tax to be paid for the entrepreneur. However, the value added tax that the entrepreneur wants to receive back must also be explicitly shown on an invoice. When selling a car, “VAT can be stated” is the information from the seller that he is issuing an invoice with the necessary information.
What does “VAT reportable” mean for private buyers?
“VAT deductible” for cars is an often seen reference in the used car market, which distinguishes commercial from private car sales ads. If the VAT can be reported, it is a company or a self-employed person who is putting a car for sale. The size of the company can also be roughly derived from this. The company’s income must have reached at least 17,500 euros in the previous financial year and should not exceed 50,000 euros in the current calendar year. Only then must the value added tax be charged when selling any goods with a net sales price.