Selling goods
April 4, 2018 | 25,00 EUR | answered by Steuerberater Bernd Thomas
Hello,
My name is Matthias. I have been running a business as a sole proprietor for several years. Now I have founded a second business with a partner as a general partnership (OHG). Can I now buy and sell goods back and forth? Is it allowed to sell goods purchased by my sole proprietorship to the OHG and vice versa?
Best regards
Dear questioner,
I am happy to answer your inquiry based on the information provided in the context of an initial consultation on frag-einen.com. The response is based on the facts you have provided. Missing or incorrect information can affect the legal outcome.
The exchange of services between a general partner of a general partnership (OHG) and the OHG is always recognized from a tax perspective, as long as it is not a contribution by the partner triggered by the partner relationship. In the case of the sale of goods, this is usually recognized when commercially reasonable conditions that hold up to third-party comparison are agreed upon and adhered to (e.g. Federal Fiscal Court ruling of 28.10.1999, VIII R 41/98, BStBl II 2000, 339, although the Federal Fiscal Court has not always ruled consistently on this question in the past).
From a VAT perspective, it is important to determine whether the OHG partner is considered an entrepreneur according to the UStG (which should always be the case for a sole trader). If the partner provides supplies in his capacity as an entrepreneur for consideration to the company, these transactions, like those to a third party, constitute a VATable exchange of services.
The assessment may vary from an income tax and VAT perspective.
As this is a long-term oriented arrangement, I recommend that you seek detailed advice from a colleague in your area.
Best regards,
Bernd Thomas
Tax advisor
