Company car
May 21, 2015 | 35,00 EUR | answered by Anton Pernitschka
Hello, a question regarding the company car. So, a sole proprietor has privately purchased an Audi A6. He then wanted to include it in the company assets. The A6 was included, but with the purchase value (€11,900) and without VAT being deducted. The sole proprietor is also the owner. Now, after the end of the useful life and depreciation, the Audi should be removed from the company assets. How can this be done best without having to pay 19% of the turnover (residual value of approximately €7,500) to the tax office, since the entrepreneur did not deduct VAT. I need the exact posting codes SK04. Thank you for your effort.
Dear questioner,
In the context of an initial consultation and your fee commitment, taking into account the regulations of this forum, I would like to answer your question.
The turnover tax can be avoided if you remove the company car before selling it and transfer it to your private assets. According to the case law of the ECJ, a withdrawal does not trigger turnover tax if the car was acquired without input tax deduction. After a short waiting period, you can then sell the car from your private assets without turnover tax. However, you must be able to prove the previous withdrawal. It is best to inform your tax office in writing on which day you withdrew the car from your business assets. This notification should be made to the tax office before the sale.
If the company car in this case was not sold but only transferred to private assets, the above precautions are not necessary. The withdrawal does not trigger turnover tax because the car was purchased without input tax deduction.
The residual value of €7,500 should be booked out from the vehicle account (e.g. 0520). The offsetting entry can be made to the withdrawal account (e.g. 2100).
The answer was given according to the facts you provided. Missing or incorrect information about the actual circumstances can affect the legal outcome.
Best regards,
Anton Pernitschka
Tax advisor
