The Essential VAT Filing That You Must Do


In principle, no private individual is entitled to issue an invoice with added VAT. Legal requirements must be met so that VAT can be reported. A trader who waives the so-called small business regulation can, like a large company, issue his customers with invoices differentiated according to the net amount and VAT. Foreign sales must be considered separately. The importance of the VAT procedure has to be seen differently.

Reportable VAT requires legal requirements

Meaning of the note “VAT can be stated”

Commercial and private advertisements are distinguished by the note “VAT can be stated”.

Should a used car dealer use the term “VAT deductible”, they are pointing out two things: First, the company has a certain size because it pays VAT. And he cannot take advantage of the simplification for small business owners. Using the tax app is essential in this case.

  • With this note on the VAT reporting, it is a commercial offer with warranty rights and guarantees. This is not insignificant with a larger purchase.
  • The note “VAT can be stated” is of interest to companies that can deduct this stated VAT from their sales tax as so-called input tax. The significance for this group of people: The price is reduced by the amount of VAT.

Advantages and disadvantages of VAT

If you sell a vehicle as a private person, unlike a company, you have no way of reporting VAT. The meaning is not relevant for you as a seller.

Input tax definition

The sales tax law (18 UStG) regulates the obligation to register sales tax in advance. If a company buys another vehicle for its fleet, it can benefit from the comment “VAT can be stated”. It can deduct the VAT shown as input tax from the VAT it has calculated on sales or services to customers. The difference from the remaining sales tax must be reported to the tax office and paid with the monthly sales tax advance notification.

As a self-employed person, you have an obligation to write invoices. If you waive the small business regulation, the legislator obliges you to show the value added tax on your invoices. Your customer pays the tax, which you later pass on to the tax office. This tax procedure thus represents a transitory item for entrepreneurs.

  • An offer without VAT has advantages for private individuals. A purchase without 19% VAT is cheaper for them. There is nowhere to put sales tax.
  • For private buyers, a valid final amount must be traceable on the invoice. Otherwise the note “plus 19% VAT” clarifies the invoice amount to be paid.
  • For private individuals or entrepreneurs with tax-free sales, the note “VAT can be stated” is irrelevant. For them it is just a cost factor.

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