Dealers who provide car buyers with a warranty will become insurers for tax purposes, according to the Ministry of Finance's order. (Photo: © Bartolomiej Pietrzyk/123RF.com)
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According to the German Automobile Industry Association (ZDK), the automotive trade is facing new bureaucratic burdens. As of July 1, warranty commitments made by car dealers to vehicle buyers will be treated differently than before. The association fears devastating consequences.
According to the Central Association of the German Motor Vehicle Industry (ZDK) should Guarantee commitments from car dealers to vehicle buyers in terms of insurance and VAT fundamentally different treated more effectively than before. The association fears devastating consequences with large additional bureaucratic burdens for the companies.
The ZDK has received a letter from the Federal Ministry of Finance to the highest financial authorities of the states, in which a two-and-a-half-year-old judgment des Federal Finance Court of 14 November 2018. According to this order, dealers who provide car buyers with a guarantee are to be exempted from the become insurers from a tax perspective.
In case of doubt, traders should contact the Federal Central Tax Office register, monthly insurance tax register and pay, special record-keeping obligations descendants and separate invoices for the guarantee commitments.
DHB now also digital!Simply click here and register for the digital DHB!"This additional bureaucratic effort alone is a burden for the automotive trade, which already has its back to the wall due to the months-long lockdown caused by the coronavirus. unreasonable and within the short deadline of 30 June 2021 also impossible to manage", emphasizes ZDK Vice President Thomas Peckruhn.
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Financially even more threatening is that because of the future insurance tax-liable but VAT-free guarantee commitments of the Input tax deduction of the dealer from input services (spare parts, overheads) not possible anymore would be – from the point of view of the ZDK – a massive economic disadvantage of trade.
The dealer must also consider the overhead costs Input tax key Especially because of the changes to be implemented at short notice According to the ZDK, high correction costs, frequent repayments and, in some cases, even the at least de facto double burden of insurance tax and sales tax would be almost unavoidable.
The ZDK has therefore written to the Federal Minister of Finance Olaf Scholz and points out the consequences of this directive for the automotive trade. Peckruhn calls on the Minister to extend the deadline granted to the federal states by at least twelve months. In a second step, with the involvement of the affected parties, a solution should be developed that meets the needs of the companies and their customers and, above all, practically implementable solution be worked out.
Source: ZDK
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