Industries
Car dealerships
In vehicle trading, details often determine the correct tax treatment: new or used car, purchased in Italy or abroad, private or business customer. We support car dealerships, used car dealers and workshops with a trading business in South Tyrol.
Industry
What matters to you
In vehicle trading, the VAT treatment depends on the vehicle, its origin and the buyer. We examine the individual types of transaction and derive the requirements for invoices and supporting documents.
On top of this come high inventory values, financing and leasing models and registration formalities. We make sure that bookkeeping, filings and valuations fit your business model and can be followed in the event of an audit.
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Margin scheme for used cars
If you buy used cars from private individuals or from dealers who have themselves applied the margin scheme, you can use the special scheme for second-hand goods (regime del margine) when reselling. VAT is then charged only on the difference between the purchase and sale price, not on the full price.
The scheme is subject to formal requirements: the origin of the vehicle, correct documentation, a dedicated register and a note on the invoice. If any of these is missing, the tax authorities may demand full taxation. We review your processes and help you decide when the margin scheme makes sense and when normal taxation may be more favourable.
- Review of origin and purchase documents
- Keeping registers for vehicles under the margin scheme
- Correct invoice details when selling
Vehicle trade with other EU countries
Many South Tyrolean dealers buy vehicles in Germany or Austria or sell to customers abroad. Intra-Community transactions are subject to their own rules: new vehicles are generally taxed in the buyer’s country, even if the buyer is a private individual. Whether a vehicle counts as new for tax purposes depends on its age and mileage.
For vehicles from other EU countries, registration in Italy in certain cases requires proof that VAT has been duly paid. The transactions must also appear in the periodic returns and, where applicable, in the Intrastat returns. We check your business partners’ VAT identification numbers, take care of the filings and make sure that supplies and acquisitions are properly documented.
Inventory, financing and liquidity
In car dealing, a large share of capital is tied up in vehicle stock. The valuation of inventory (rimanenze) at year-end directly affects profit and must follow consistent, transparent criteria. For older vehicles that have been in stock for a long time, the question of a write-down often arises.
We support you with stocktaking and valuation, reconciliation with purchase financing and manufacturer bonuses, and cash-flow planning that takes account of seasonal fluctuations and payment terms.
Leasing and company cars
Many of your customers are business owners themselves and ask about the tax treatment of their vehicle. In Italy, costs and input VAT for vehicles not used exclusively for business are only partly deductible. For vehicles that employees may also use privately, a taxable benefit in kind (fringe benefit) is applied, the amount of which depends, among other things, on the type of vehicle.
For your own business, we clarify the treatment of demonstration cars, workshop courtesy cars and company vehicles. For leasing and hire purchase, we review the tax treatment of instalments and their accrual in the financial statements.
Step by step
How we work together
Stocktaking
We look at which vehicles you buy, from whom, and to whom you sell them. This determines which tax rules apply to your transactions.
Setting up processes
Together we define which documents and details are recorded for purchases and sales. That way, invoices and registers are correct from the start.
Ongoing support
We handle bookkeeping, VAT and filings and get in touch if anything needs clarifying on individual transactions.
Annual accounts and analysis
At year end we value the inventory, prepare the financial statements and tax returns and discuss the figures with you.
Frequently asked questions
Answers on vehicle purchasing, the margin scheme and company cars.
Can I sell any used car under the margin scheme?
No. What matters in particular is the tax treatment of the purchase and the conditions on the supplier’s side. The fact that you did not deduct input VAT yourself is not sufficient on its own. We review the purchase documents and clarify whether the margin scheme may be applied.
What do I need to watch out for when buying a vehicle in Germany?
The first question is whether the seller invoices under the standard regime or the margin scheme, and whether the vehicle counts as new for tax purposes. This determines the VAT and supporting documents required in Italy. Wherever possible, we review the documents before the purchase and also take registration requirements into account.
How are my demonstration vehicles treated for tax purposes?
Demonstration vehicles usually form part of current assets, because they are intended to be sold later. If they are also used privately, there may be consequences for input VAT deduction and payroll. We clarify the classification case by case.
Is a separate company for the leasing business worthwhile?
That depends on the volume, the financing partners and liability issues. In many cases, brokering through leasing companies is sufficient. We work through the options with you before you commit.
Let’s talk about your plans.
Arrange a no-obligation initial meeting in Merano, Laces or online.