Study on the Accounting and Tax Scheme of Second-Hand Goods Such as Cars

From a tax point of view, taxable dealers have the right to choose applying the special VAT scheme, under certain conditions and limitations. The European Directive requires, as a general rule, to assess the margin for each good, as a difference between the selling price charged by the reselling person and the purchase price for such good. However, as an alternative method, the European directive allows that, under certain conditions, the Member States shall provide in their national legislation that the profit margin calculates globally, for all operations performed during the tax period (month, quarter, etc.). This article aims to release, for the first time on national level, divergences between the application of EU and national legislation on the tax arrangement of second-hand goods such as cars, starting from the fact that national legislation has chosen only the application of the second method (method of establishing the overall profit margin at the level of a tax period), irrespective of the type of second-hand goods, dealers and accounting system used by the latter.