Software Radar

Used-vehicle trading

Trading in used vehicles requires three things a workshop program does not know: the individual vehicle as a stock item with its cost value and days in stock, the trade-in as part of the payment, and margin taxation for VAT.

Definition

Under margin taxation only the difference between purchase and sale price is taxed — permitted where no input tax deduction was possible at purchase, for instance when buying from a private person. No VAT may then be shown on the invoice; whoever shows it anyway owes it on the whole amount.

Days in stock are the second commercial figure: every vehicle ties up capital, and the contribution margin falls with each month on the forecourt. Without a cost value and entry date per vehicle this cannot be calculated.

Where to read it

What the software must be able to do

What is needed is vehicle management with cost value, entry date, days in stock and sale price per unit, plus margin taxation and the trade-in as a payment method. If one of these is missing, side calculations appear — and VAT becomes manual work.

Checked Aug 2026

More terms under Vehicles and transport: Driving and rest hours (ARV1) Heavy vehicle charge Trade-association workflows Vehicle inspections