VAT When Buying Used from MPB
At MPB we buy and sell thousands of models of used photographic and video gear. As we primarily deal with used items we are able to operate under a special Value Added Tax (VAT) regulation known as 'Differential Taxation" which means only the difference between the price we buy an item for and the price we sell that same item for is subject to VAT.
Under normal VAT rules MPB would be required to charge our customers VAT at 19% of the buy price when a second-hand item is sold. Using differential taxation means that VAT is only levied on the value we add, helping us to keep our buy prices affordable.
I am VAT registered, can I claim back VAT on a used item from MPB?
At MPB we operate differential taxation as we deal primarily with used goods. Under the differential taxation calculation the VAT is treated as included within the buy price of the item and MPB is responsible for calculating and paying any VAT due on used item sales made.
It is not permitted for us to charge VAT to our customers separately which means it is not possible for any VAT paid by MPB using the differential taxation calculation to be reclaimed by our customers.
What is differential taxation?
Differential taxation is a special VAT regulation that can be applied to the resell of used items where VAT is only levied on the value difference between the price an item was purchased at and the price at which it was sold. MPB operates differential taxation for used items.
The differential taxation calculation can be applied by companies that trade in second-hand goods under section 25a of the German Value Added Tax Act (§ 25a Differenzbesteuerung, Umsatzsteuergesetz, UStG).
Do your prices include VAT?
Yes, all buy prices stated on the Online Shop are inclusive of VAT irrespective of whether the item is being sold under the differential taxation special regulation or not.
Why does it show VAT on my purchase invoice?
The differential taxation calculation can only be used on second-hand items where we were not charged VAT when we originally bought the item. As such, VAT may still be charged under the normal rules on some items we sell. Where this is the case VAT will be shown as a separate item on our sales invoice and it may be possible for you to reclaim this VAT from the tax office if you are VAT registered. You should check with your accountant if you are unsure if VAT can be reclaimed when buying from MPB.
VAT When Selling to MPB
When you sell with MPB the price offered by us for your kit is quoted inclusive of VAT where applicable.
If you are selling to MPB and are VAT registered then we may need to make some changes to the quote you have received. Please reply to the quote email or contact us and let one of our account managers know that you are VAT registered or are selling on behalf of a VAT registered entity and we will be able to assist you. For further information on selling as a VAT registered business read on.
Selling to MPB as a German VAT registered business
If you are registered for VAT in Germany and are obliged to charge MPB VAT on the sale of your kit the price we quote is for the total amount of the transaction including VAT.
When selling to us as a VAT registered business you will be required to send us a VAT invoice to complete your sale, read more under "VAT Invoice Requirements".
Selling to MPB as a European VAT registered business (excluding Germany)
If you are registered for VAT in an EU member state (other than Germany) the transaction will be zero rated under the reverse charge rules and MPB will be responsible for calculating and paying the VAT due. As the general rate of VAT in Germany is currently 19% the quote will be reduced to the VAT exclusive price using the following calculation: quote ÷ 1.19.
Example: We initially offered €119 for your item. If you let us know you are VAT registered we will update your offer to €100 for the item + €19 VAT.
When selling to us as a VAT registered business you will be required to send us a VAT invoice to complete your sale, read more under "VAT Invoice Requirements".
How do Trade-Ins work if you are VAT registered?
If you are doing a Trade, the balance you see on your quote will be the actual amount due, including any payment of VAT. The price of the item(s) being purchased are inclusive of VAT.
What are VAT invoice requirements?
If you are selling to MPB as a VAT registered business you are required to issue us with a valid VAT invoice if you wish to proceed with the sale once we have received your gear and confirmed your quote.
In order for us to be able to accept your VAT invoice, it must contain the following
information:
Invoice date & number
Date of supply (delivery date)
Your details, including;
Name (or trading name) and address
VAT number
Bank account details
Our TX number
A description of the item/(s) including quantity
The total amount the item/(s) are being sold for excluding VAT
The total VAT charged and the rate (i.e. 19% or 0%)
The total amount the item/(s) are being sold for including VAT. This should agree to our quote (or our revised quote if zero rated under reverse charge rules).
Where the reverse charge rules apply; a statement that the VAT liability is the
responsibility of the recipient of the goods and MPB’s VAT number.