Ask a tax advisor on the topic of Profit and loss statement

Sale of company car

September 2, 2014 | 25,00 EUR | answered by StB Steffen Becker

Hello!
I purchased a company car on 1.11.2012.
List price: 18,038 €
Purchase price (net): 11,512.61 €
19% VAT: 2,187.39 €
Gross price: 13,700 €
The company is to be dissolved by 31.12.2014 and the company car sold.
The VAT (2,187.39 €) was offset in 2012 (VAT / input tax).
From 2012-2014, I have depreciated a total of 4,157.33 €.
Net residual value of the company car on 31.12.2014: 7,355.28 €
I intend to sell the car for 7,000 € (net) by 31.12.2014.
Do I only have to declare the VAT (19% of 7,000 €) = 1,330 € as income, or is there anything else to consider?

Depreciation Company car Skoda Roomster VG OD 1
List price: 18,038.00 €
Estimated useful life: 6 years

AFA
Date of purchase Net price VAT Gross price Depreciation 2012 Depreciation 2013 Depreciation 2014 2012-2104
01.11.2012 11,512.61 € 2,187.39 € 13,700.00 € 319.79 € 1,918.77 € 1,918.77 € 4,157.33 €

StB Steffen Becker

Dear inquirer,

Thank you for your inquiry. I will answer this within the scope of an initial consultation based on the information provided. Missing or incorrect information can affect the legal outcome.

The sale of the company vehicle from the company's assets is subject to VAT. In the case of a sale for €8,330 gross, you are correct in stating that you have to pay €1,330 VAT to the tax office.

Furthermore, the sale of the company vehicle from the business assets is subject to income tax and possibly trade tax. The taxation is based on the proceeds of €7,000 net minus the book value at the time of sale (31.12.2014):

€7,000 - €7,355.28 (€11,512.61 minus depreciation 2012 to 2014) = -€355.28

In this case, there is a loss that has a tax-reducing effect.

I hope this information has been helpful to you.

Kind regards,
Steffen Becker
Tax Consultant