Corporate assets
In Germany's sales tax law, corporate assets include economic assets that are owned by a company and that are at least partially used to generate sales. The determination of the company's assets is important for the input tax deduction , the correction of the input tax deduction according to § 15a UStG and the scope of the free value taxes . If there is no business connection, the items are assigned to the non-business area of the entrepreneur.
In the case of corporate use of 10% or more, the entrepreneur has three options for allocation if the item is otherwise used for private purposes:
- 100% of the asset is assigned to the corporate division, private use must generally be subject to sales tax as a free value transfer .
- The proportion used for business purposes is estimated, for example the use of a car using a driver's log ; the input tax deduction is given within the scope of this share.
- The asset is 100% assigned to the non-business area, the item is ignored from the point of view of sales tax.
If the object is used partly for business purposes and partly for non-business purposes that are not private purposes (= non-economic use in the narrower sense), the tax authorities do not believe that there is any right to be allocated. Allocation to company assets is proportionate with a corresponding proportionate input tax deduction. Examples of such non-economic use in the narrower sense are the use in the non-profit area of a non-profit association or in a holding company without reference to taxable sales.
A property rented for private residential purposes is usually part of the personal income tax assets - income is generated from renting and leasing . However, renting and leasing is also an entrepreneurial activity, so the rented or leased property is part of the company's assets for sales tax, sales that are taxable but generally exempt from sales tax are made - § 4 No. 12 UStG.
