Business asset comparison
The business asset comparison (BVV) (also inventory comparison ) is a tax law method of determining profits . A distinction is made between the complete and the incomplete comparison of business assets.
In accordance with ) EStG (incomplete comparison of business assets) determine your profit(1
- Farmers and foresters who are required to keep accounts or who are not required to keep accounts and who submit an application in accordance with (2) EStG
- Self-employed who voluntarily keep books as well
- Tradespeople who are not required to keep accounts and who do not voluntarily keep books, but who are valued as a result of missing records in accordance with (1) of the Income Tax Act.
Betriebsvermögen am Ende des Wirtschaftsjahres - Betriebsvermögen am Ende des vorangegangenen Wirtschaftsjahres = Betriebsvermögensänderung (Zunahme oder Abnahme) bzw. Gewinn Betriebsvermögensänderung (Zunahme oder Abnahme) bzw. Gewinn + Entnahmen des Wirtschaftsjahres - Einlagen des Wirtschaftsjahres = Gewinn / Verlust
The tax concept that is decisive for this type of profit determination is known as the net wealth access theory and is based on the increase in assets within a certain period of time as taxable income, while excess income ( (1) sentence 1 no. 4 to 7 EStG) is the so-called Source theory is based.