To apply the small business rule to resellers subject to differential taxation

BUNDESFINANZHOF judgment of 23.10.2019, XI R 17/19 (XI R 7/16)
ECLI: DE: BFH: 2019: U.231019.XIR17.19.0

ECJ C-388/18 (EU: C: 2019: 642, German tax law –DStR– 2019, 1685):

“Article 288 (1) no. 1 of Council Directive 2006/112 / EC of November 28, 2006 on the common system of value added tax is to be interpreted as precluding national regulation or national administrative practice, according to which the determination of turnover , which is to be used as a basis for the applicability of the special regulation for small businesses to a taxable person subject to differential taxation for taxable resellers, only the trade margin achieved is taken into account in accordance with Article 315 of the Directive to determine the amounts received without VAT, regardless of the manner in which those amounts are actually taxed. ”

When determining the total turnover according to the small business regulation (§ 19 UStG) for a dealer who is subject to differential taxation (§ 25a UStG), it is not the difference between the requested sales price and the purchase price (trade margin) that is based on the total income

Source: bundesfinanzhof.de

 

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