Tento průvodce je k dispozici v němčině a angličtině.
A large share of the used cars dealers buy comes from private sellers. They don’t issue invoices with VAT, so there is no input tax to deduct on the purchase. If the dealer then paid 19 % on the full resale price, the same value would be taxed twice. The German margin scheme under § 25a UStG prevents exactly that: VAT is due only on the margin the dealer adds.
- Under the margin scheme you pay VAT only on the difference between selling and buying price.
- It applies when you bought the car without VAT – typically from private sellers or from dealers who sell under the margin scheme themselves.
- The VAT sits inside the margin: at 19 % it is 19/119 of the difference.
- The invoice must not show VAT; a note on the special scheme for second-hand goods is mandatory.
- A negative margin does not reduce other sales: each car is calculated on its own.
- For purchases from another EU country, the tax depends on how the seller sells – under the margin scheme or with VAT.
1. When the margin scheme applies
The scheme is meant for resellers, i.e. businesses that trade used cars commercially. It applies when no VAT was due or shown separately on the purchase. In practice these are mainly:
- Purchases from private individuals.
- Purchases from small businesses that don’t charge VAT.
- Purchases from other dealers who sell the car under the margin scheme themselves – also from another EU country.
- Purchases from companies that bought the car without deducting input tax and sell it VAT-exempt.
It does not apply if you bought the car with VAT shown – for example from a leasing company or a dealer selling under standard taxation. Then you deduct the input tax and sell at the full rate. In German listings the difference usually shows as “MwSt. ausweisbar” (VAT deductible) – such cars are attractive for VAT-registered dealers, but they are not under the margin scheme.
2. How to work out the VAT from the margin
The taxable amount is the difference between selling price and buying price. That difference is a gross amount: the VAT is already included. At a rate of 19 % it is 19/119 of the margin, about 15.97 %.
- Bought from a private seller: €10,000.
- Sold to the customer: €12,500.
- Margin (gross): €2,500.
- VAT included: €2,500 × 19/119 = €399.16.
- Margin after VAT: €2,100.84.
Important for your calculation: repairs, reconditioning or transport do not raise the buying price under § 25a. The difference is calculated from the plain buying and selling prices. You can still deduct the input tax on workshop and reconditioning invoices as usual.
Each car is looked at on its own. If you sell below the buying price, the taxable amount is zero; you cannot offset the loss against another car’s margin. The so-called overall margin is only allowed for items bought for up to €500 and plays practically no role for cars.
3. What the invoice must say
On margin-scheme sales, VAT must not be shown separately – otherwise you owe it in addition, on the full price. Instead the invoice must refer to the special scheme; in Germany the usual wording is “Gebrauchtgegenstände/Sonderregelung” (§ 14a (6) UStG). The buyer cannot deduct input tax from such an invoice, which is worth raising with business customers.
You can opt out of the margin scheme for any sale and sell with standard VAT, for instance when a business buyer wants to deduct input tax. You then pay 19 % on the full price with no input tax from the purchase to offset it – worthwhile only if the price absorbs that.
4. Buying in another EU country
For cross-border purchases within the EU, it depends on how the seller sells the car:
- If a dealer from another EU country sells under the margin scheme, there is no intra-community acquisition. You buy without VAT shown and can sell under the margin scheme again.
- If the dealer sells with standard VAT, the supply to your VAT ID is normally exempt; you account for the acquisition in your country and deduct the same amount as input tax. The resale is then taxed at the full rate.
- New means of transport under VAT law – at most six months old or at most 6,000 km – are always taxed in the country of destination, even when bought from a private person.
Every EU country has a margin scheme for used cars, under its own name and rule: in Austria § 24 UStG 1994, in the Netherlands the margeregeling (art. 28b Wet OB 1968), in France the régime de la marge (art. 297 A CGI), in Italy the regime del margine (art. 36 D.L. 41/1995), in Poland the procedura marży (art. 120 of the VAT act), in the Czech Republic the special scheme for used goods (§ 90 of the VAT act).
5. What it means for your buying
The margin scheme makes cars from private sellers attractive for dealers: on a €2,500 margin, just under €400 VAT is due, while a sale with standard VAT at the same price would cost much more without input tax from the purchase. At the same time the margin is your only lever – every euro saved on the purchase adds to it directly.
That is why it pays to see private offers early and to know what the car is worth before you call. For every offer on mobile.de, AutoScout24 and Kleinanzeigen, CarFalke shows the market value from comparable offers, the buying potential and whether a private seller or a dealer is selling.
