§25a Differenzbesteuerung for used records

§25a UStG is a German tax provision that lets VAT-registered businesses dealing in used goods charge VAT only on their margin (difference between buying and selling price), rather than the full sale price. It's called Differenzbesteuerung — differential or margin-based taxation.

When it applies

§25a applies if all of these are true:

• You are a VAT-registered business (not §19 Kleinunternehmer, not private)
• The item is a used good (gebrauchter Gegenstand) — used records and tapes qualify
• You bought the item from someone who did not charge you VAT — typically a private seller, a §19 Kleinunternehmer, or another §25a margin-scheme dealer
• You are reselling it within your normal business activity

If you bought a record from a regular VAT-registered seller with a full VAT invoice (i.e., you got VAT-Vorsteuerabzug on it), §25a does not apply. You use regular VAT instead.

How it works mechanically

Example numbers:

• You buy a record from a collector for €80 (no VAT invoiced — the collector is private)
• You sell it for €120
• Your margin is €40
• Under §25a, VAT is calculated on €40, not €120
• At 19 %, that's €6.39 of VAT out of the €40 margin (€40 × 19/119 = €6.39)
• The net of the sale is €120 − €6.39 = €113.61

Compare this to non-margin VAT: you'd owe 19 % on the full €120 = €19.15 to the tax office. §25a saves you €12.76 on this transaction.

Why it exists

Used goods have already been taxed once when they were new. Without a margin scheme, every successive resale would be fully taxed again — which would either tax the same items multiple times or push used-goods dealing out of the VAT system entirely. The margin scheme is a compromise.

Invoice rules under §25a

Invoices for §25a sales must:

• Reference §25a UStG explicitly
• Not show the VAT amount or the VAT rate separately (because the buyer cannot reclaim it)
• Show only the gross price
• Note "Differenzbesteuerung — Gebrauchtgegenstände" (or similar) somewhere on the invoice

This is one of the few cases where a German VAT-registered invoice does not show VAT on its face — a deliberate compliance feature.

When this matters for you

If you are a business seller and a significant portion of your stock was bought from private collectors, the margin scheme can mean noticeably lower VAT bills than full taxation. The math is worth doing.

When this doesn't apply

• §19 Kleinunternehmer — you don't charge VAT anyway, so the question doesn't arise
• Private sellers — outside the VAT system entirely
• Sales between two VAT-registered businesses where the original sale was VAT-invoiced — regular VAT, no margin scheme

How the platform handles it

When you set up as a business seller, you tell us whether you intend to use §25a for some or all of your sales. Your invoice template adjusts accordingly:

• §25a items — invoice without separate VAT line, with the §25a reference
• Regular VAT items — invoice with VAT line and rate

A single business seller can use both — different items in different categories. You mark each listing's tax treatment when you list it, and the right invoice format is generated.

Recordkeeping

The §25a scheme requires per-item recordkeeping of your buying price (so the tax office can verify the margin). The platform stores this for you for items entered through the system. For items you brought in from elsewhere, you need to keep your own records.

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This is general information, not tax advice. The §25a margin scheme has detailed eligibility rules, recordkeeping requirements and edge cases (e.g., the global margin method, the alternative-period method) that depend on your specific situation. Consult a Steuerberater (tax advisor) for binding guidance before applying it to your business.