Differential taxation is a special form of sales taxation in which only the difference between the sales price and the purchase price - i.e. the profit - is taxed. value added tax is subject to.
Detailed explanation/description:
Differential taxation in accordance with Section 25a UStG is a tax procedure to avoid double taxation of sales in the trade in used movable goods, especially if these are purchased by private individuals or VAT-exempt entrepreneurs. Only the difference between the purchase and sales price is subject to 19 % VAT. A Input tax deduction is not possible.
The assessment basis is the amount by which the sales price exceeds the purchase price. For items with an individual value of less than € 500, the total difference between several sales can be summarised.
Integration into business processes
Differential taxation must be specifically mapped in SAP Business One. The creation of separate posting accounts and correct tax labelling are necessary in order to meet legal requirements and ensure transparency.
Relevant modules and functions
- financial accounting
- Sales (sales documents)
- Purchasing
Versino Financial Suite
the Versino Financial Suite makes differential taxation in SAP Business One much more secure, transparent and efficient. It automates account assignment, ensures correct tax labelling, offers special reports and guarantees GoBD compliance.
Concrete application examples
- A retailer buys used electrical appliances from private individuals and sells them on at a profit. VAT is only charged on the profit.
- An art dealer sells a painting that he has purchased from a small business owner. He only pays tax on the difference between the purchase price and the sale price.
Key features/important aspects:
- Application only for purchases of goods without input tax deduction (e.g. from private individuals)
- Only for movable goods within the EU
- Separate account structure required for individual and total differences
Posting business transactions with differential taxation
For a proper Accounting the use of special accounts is recommended, e.g:
- Goods receipt individual difference
- Total difference in goods received
- Revenue from individual differences without VAT
- Revenue from individual differences with VAT
- Revenues Total difference without VAT
- Revenues Total difference with VAT
Advantages/benefits (optional):
Tax relief for dealers of used goods, simplified tax processing and competitive advantage through more favourable pricing.
Best practices/instructions for use (optional):
- Careful examination of the requirements before use
- Exact separation of differential taxation and standard taxation
- Use of suitable posting accounts for traceability
Target group:
Accountants, used goods dealers, financial managers, SAP consultants
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