Differential taxation

Information on differential taxation

The basic idea behind differential taxation is to offer a tax-fair solution for goods in secondary markets. Value-added tax is not applied to the total price, but only to the difference between the purchase and selling price of the goods.

In practical terms, this means that certain goods (e.g., numismatic coins, works of art, jewelry, etc.), for which VAT has already been paid by a consumer, are only subject to VAT on the retailer's markup when resold by a merchant, not on the total price. The legally important point is that the VAT has already been paid once.

While the standard tax rate of 20% always applies to the sale of bars, coins and coin bars, both made of precious and base metals, which are or were legal tender, can usually be sold under differential taxation.

In particular, coins imported from a country outside the European Union and then resold domestically can be offered with differential taxation.

When a dealer resells a product, the 20% sales tax is not applied to the full net selling price, but is only payable to the tax office on the difference between the purchase price and the gross selling price.