May I use the margin scheme?
Unsure whether standard taxation or § 25a UStG applies? Answer two questions and get an immediate initial assessment.
The core principle is simple: § 25a follows the purchase and generally requires a purchase without an input-VAT deduction. This tool does not replace an individual review of borderline cases.
§ 25a Quick Check
Answer two questions to find out whether you may apply the margin scheme.
What exactly does the § 25a check assess?
The German margin scheme under § 25a UStG is central to used-vehicle trading, but it is only available when the relevant purchase was made without an input-VAT deduction. Misclassifying the purchase affects the entire sales workflow, including tax treatment, invoice wording, evidence and archiving.
How the check works
- Select who sold the vehicle to you and how the purchase invoice treated VAT.
- See whether § 25a is typically available in this standard case.
- Review the next steps for invoice wording, EU supplies or exports.
Useful rules of thumb
- Often eligible: purchases from private individuals, § 19 small businesses or dealers using the margin scheme.
- Often ineligible: purchases with VAT shown separately and a corresponding input-VAT deduction.
Special cases such as chain transactions, special territories and unusual documents are fact-dependent and should be reviewed individually.
Use the right invoice notice
Incorrect or missing wording for § 25a, intra-Community supplies or exports creates an avoidable compliance risk.
Invoice Text GeneratorSimulate the complete deal
Compare the tax treatment and actual net profit when an EU sale, export or opt-out from § 25a is under consideration.
§ 25a check FAQ
Concise answers to the most common questions about invoices, documentation and EU cases.
When may a car dealer typically apply § 25a?
Typically when the vehicle was purchased without a right to deduct input VAT, for example from a private individual, a small business under § 19 UStG or another dealer who already applied the margin scheme. The purchase tax status is decisive.
What is the most common practical mistake?
An incorrect purchase tax type then leads to the wrong sales tax treatment or invoice wording. A vehicle sold under § 25a cannot simultaneously be treated as an exempt intra-Community supply.
Can I supply a § 25a vehicle to another EU country VAT-free?
Not while applying § 25a. The exempt intra-Community supply under § 6a UStG and the margin scheme cannot be combined. Depending on the transaction, opting for standard taxation may be considered.
May I show VAT separately when applying § 25a?
No. VAT must not be shown separately. The invoice needs an appropriate notice referring to the special scheme under § 25a UStG.
Do preparation and repair costs reduce VAT under § 25a?
They reduce the economic profit, but they normally do not reduce the transaction-specific VAT margin. VAT is derived from the difference between purchase and selling price.
Is the result tax advice?
No. This is an initial assessment for typical cases. Chain transactions, special territories, unusual documents and other exceptions require individual review.
In the Autaxo DMS, this assessment is built into the workflow. Learn more about § 25a, EU and export tax logic.
This tool provides general guidance and does not constitute tax advice.