Selling a company car to private customers? The guarantee!

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There are a few things to consider when selling a company car. There are tax and legal errors that can damage a company. For many companies, an intact vehicle fleet is the be-all and end-all. After all, the goods or services come to the customer with the vehicles. A new acquisition is therefore usually due at the latest after six years and the expiry of the depreciation. However, many of them often overlook some legal and tax aspects. That is why we advise to be far-sighted not only when buying, but also also when selling old company vehicles, as it can be avoided in this way that additional costs arise.

Warranty obligation when selling!

Selling a company car to private individuals is with a legal Warranty obligation tied together. That means the seller for two years is liable for all defects in the vehicle that were already present at the time of sale. This can also be used when selling to private individuals not contractually excluded will. It doesn't matter whether the selling company is a car dealer or the baker around the corner. When selling the vehicle to a company or to a car dealer, however, a Disclaimer of Warranties to be agreed. This avoids incurring additional costs afterwards.

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Taxes are always due when the vehicle is part of the business assets

The money that is raised from the sale of the old company car mostly flows directly into the new one. Good salespeople even achieve a clear price here above book value of the vehicle. The profit from the sale is however taxable; even if the vehicle z. In some cases it was used privately and could not be written off completely. (Judgment of the Federal Fiscal Court BFH, Az.XR 14/12)

Calculate taxes before you sell

If a GmbH sells a vehicle with a residual book value of 10.000 euros for 15.000 euros, a profit of 15.000 euros is achieved. In this case, the corresponding corporation and trade tax as well as the sales tax have to be paid. If you forget this in your calculation, you may get a nasty surprise. Likewise, not only the sum above the book value can lead to problems, but also a price below the book value if the car is sold to a partner, for example. In such cases, the tax office regularly doubts the Appropriateness of the purchase price at. One Expert opinion can provide the necessary security here before selling.

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Does the vehicle count towards company or private assets?

  1. If a vehicle is used at least 50% by the company, it is considered to be Company assets consider.
  2. On the other hand, if it is used for business purposes below 10%, it is clearly classified as private assets.
  3. In the case of operational use between 10% and 50%, the holder has the choice of whether to attribute it entirely to company or private assets.

If there is an allocation to private assets, the company should make business trips document exactly. In this way, a suspicion of the tax office can be dispelled that more than 50 percent of the car is used operationally. But you always need one Case-by-case examinationwhether it is cheaper to declare a car as private or corporate assets.

Prior withdrawal from company assets

Even if the company was unable to claim input tax deduction on the purchase at the time, it is Sales of the vehicle is subject to sales tax. The only way to get around this is the so-called "Pick-and-sell model". Company owners can initially take the vehicle out of business assets and transfer it to private assets. In this case no sales tax when selling. The removal should be booked immediately and documented with evidence so that problems cannot arise afterwards. At the end... When selling company vehicles, it is advisable to find out about the tax and legal aspects in good time, as this can avoid unpleasant surprises.

Of course, that wasn't the end of it.

tuningblog.eu has a lot of other articles on the subject of auto & tuning in stock. Do you want to see them all? Just click HERE and look around. But also planned changes in the law, violations in road traffic, current regulations in the field of STVO or on the subject inspection we would like to inform you regularly. Everything you can find in the category "Test sites, laws, offenses, information". Following an excerpt of the last information:

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