Selling private cars through a business license
June 10, 2011 | 30,00 EUR | answered by Michael Herrmann
I have had a business license for a side business since November of last year. The annual turnovers are also very low.
I want to sell my private car, which is relatively new. It turns out that a businessman is interested. Can I now register or transfer the car to the business license in order to sell the car to the businessman with VAT shown?
Value of the car approximately 33,000 EUR gross
The business was declared and settled with the tax return for 2010. Of course, I want everything to be done cleanly.
What do I need to consider?
Best regards
Dear inquirer,
First of all, thank you for your inquiry, which I would like to answer based on the information provided and considering your efforts in the context of an initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
The approach you are considering, even if feasible, does not make sense from a tax perspective.
The main difficulty lies in assigning the car to commercial assets. This is only possible in a non-bookkeeping commercial business, which I assume has low turnover, if a business use of more than 50% can be proven. If successful, the sale of the vehicle would be exempt from VAT, as no input tax was deducted when the vehicle was purchased. A VAT statement would not be possible.
Please note that the VAT you have declared must also be paid to the tax office. Therefore, you will always receive a net amount. The idea of collecting €33,000 gross and offering the businessman a VAT statement cannot succeed in any situation.
I hope that these explanations have provided you with a sufficient overview of the situation within the scope of your efforts and this initial consultation.
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor
