§ 25a Margin Calculator
See what remains after the VAT amount within the margin, additional costs and capital costs, including your net profit and ROI.
Designed for standard cases and not a substitute for tax advice. If you first need to assess whether § 25a is available, use the § 25a Quick Check.
1 Calculation
Gross: Enter the amount including VAT. We remove the 19% input VAT for you.
The money invested in the vehicle is tied up.
1. If you use a loan, you pay actual bank interest.
2. If you use equity, you forgo returns available elsewhere (opportunity cost).
After tax, costs and interest.
What the calculator clarifies in 30 seconds
- VAT within the margin: the VAT amount included in the transaction-specific difference.
- Actual net profit: selling price minus purchase, costs, interest and VAT.
- ROI instead of intuition: profit relative to the capital tied up in the vehicle.
The mathematics behind § 25a
The most common misconception is that additional costs reduce the margin-scheme VAT. Under § 25a, VAT is normally derived from the difference between the purchase and selling price. Preparation, repairs and inventory costs reduce the economic profit, but do not automatically change that transaction-specific difference.
Practical warning: high preparation costs combined with a small margin can create a capital trap. VAT is still due within the margin even though parts and services may have been purchased gross without an input-VAT deduction.
When this calculator is the right tool
- Ideal: vehicle-by-vehicle profit decisions for eligible § 25a purchases.
- Not designed for: EU/export exceptions, opting out of § 25a, or evidence-chain decisions.
For EU and export scenarios with an optional switch to standard taxation, use the Smart Deal Calculator.
Check eligibility first
§ 25a follows the purchase. VAT shown separately on the purchase invoice normally excludes the margin scheme.
§ 25a Quick CheckUse the right invoice notice
Generate the appropriate wording for § 25a, an intra-Community supply or an export.
Invoice Text GeneratorSimulate EU and export cases
Compare scenarios when the buyer requests a net invoice or a non-EU export is involved.
Smart Deal CalculatorWhy €500 profit alone says very little
In used-vehicle trading, ROI often reveals more than absolute profit, especially for slow stock and capital-intensive vehicles.
§ 25a Margin Calculator FAQ
Practical answers for more reliable deal decisions and documentation.
Do repair costs reduce VAT under § 25a?
Typically not. VAT under § 25a is derived from the difference between the selling and purchase price. Repair and preparation costs reduce profit, but do not automatically reduce the transaction-specific VAT margin.
What does “VAT within the margin” mean?
The invoice does not show VAT separately under § 25a. Nevertheless, the gross margin includes a VAT amount that must be derived mathematically. The calculator makes this amount visible.
What happens if the margin is negative?
A negative difference normally does not produce VAT under the margin calculation because the taxable amount is zero. Economically, the deal still produces a loss, especially after additional costs and interest.
When should I use the Smart Deal Calculator instead?
Use it when an EU sale, export or opt-out from § 25a is being considered and you need tax scenarios, evidence warnings and suitable invoice wording in addition to the profit calculation.
How do I choose the correct invoice wording?
Use the Invoice Text Generator for the relevant § 25a, intra-Community supply or export case, and have the wording checked for your individual transaction where necessary.
Does the calculator provide tax advice?
No. It is an orientation tool for standard cases and does not replace an individual tax review.
Autaxo calculates the margin automatically from purchase to invoice. See the integrated § 25a tax logic.