The correct handling of serial numbers is essential for precise inventory management and accounting. This process covers the purchase, storage, sale, and accounting of items, taking into account their serial numbers and purchase prices. The following steps ensure that every transaction is correctly recorded and settled.
Purchase: Record and manage the purchase price and serial number via the purchase order system to ensure accuracy in warehouse postings.
Sales: Items are sold by item number and serial number; the purchase price is settled internally to ensure correct VAT calculations.
Accounting overview: Create lists with serial numbers and transaction data for clear tracking of goods receipts and issues.
Automated process: Automate the transfer of price and serial number information through the system to minimize manual entries and increase accuracy.
Margin scheme taxation (Differenzbesteuerung) is a special taxation method regulated under German VAT law (§ 25a UStG). It applies primarily to the trade in second-hand goods, both in brick-and-mortar and online retail. Typical items subject to this regulation include used electronic devices, works of art, collectibles such as limited-edition sneakers, antiques, and unique furniture pieces.
Under the margin scheme, VAT is not calculated on the full selling price, but only on the difference between the dealer’s purchase price and selling price. This is particularly advantageous because input tax deduction is not possible for many second-hand goods — they are often purchased from private individuals who do not charge VAT. Margin scheme taxation allows dealers to limit their tax liability to the profit margin achieved, which reduces the tax burden and minimizes administrative effort.
This taxation method therefore supports trade in used goods and contributes to resource conservation by creating incentives for the resale of products. It is therefore an important instrument that benefits small businesses and second-hand dealers in particular.
Here are some concrete examples of how margin scheme taxation applies in practice:
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Used electronic devices: An online retailer purchases used smartphones from private individuals and refurbishes them for resale. When a device is purchased for €100 and resold for €150, VAT is only charged on the difference of €50, not on the full selling price.
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Limited-edition sneakers: A small business owner specializes in buying and selling limited-edition sneakers. They often purchase these shoes from collectors who do not charge VAT. If a pair of sneakers is purchased for €300 and sold for €400, VAT only applies to the profit margin of €100.
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Unique furniture pieces: A vintage furniture dealer acquires unique pieces from private sellers and restores them. A piece of furniture purchased for €500 is sold for €800 after restoration. Here too, tax is only calculated on the difference of €300.
These examples show how margin scheme taxation supports online trade in used or highly sought-after items. It helps dealers who cannot claim input tax to minimize their tax burden and makes trading in these products economically more attractive. Through margin scheme taxation, only the value increase created by the dealer is taxed, not the entire value of the goods — which can provide significant tax relief, particularly for high-priced or rare items.
You can access the module via My Area > App Store > Differenzbesteuerung or via the Smart Search using Differenzbesteuerung.
In the Differenzbesteuerung module in Xentral, you can efficiently manage VAT for trading in second-hand items and keep your accounting transparent. The software provides a detailed split of sales positions into two revenue accounts and automates the entry and tax-law labeling of items in the warehouse, significantly reducing your administrative effort.
You can split sales positions into two separate revenue accounts. For internal management, a special item for margin scheme taxation is created for each account, while only the regular item remains visible to your customer. Make sure to post used items to the warehouse correctly upon goods receipt — they are automatically recorded in the module overview. It is also important that you activate the designated checkbox custom field in your purchase order so that the item appears in the Differenzbesteuerung module after goods receipt. Alternatively, you can also use a fixed warehouse as the reference. The steps are described in the following sections.
Warning
Before you start billing in the Differenzbesteuerung module, make sure which tax regulations apply to your business by consulting your local tax office or tax authority.
Note
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Serial number tracking must be activated: In the item management, the option to manage and use original serial numbers when storing items must be activated.
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The process from purchase order to goods receipt must be followed precisely. Note that the quick goods receipt is not suitable here, as it does not guarantee the assignment of the serial number to the warehouse. This assignment is critical for correct and complete accounting.
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For the assignment of margin scheme taxation, you have a choice: either use a custom field and mark an item in the purchase order process — or use a dedicated warehouse. Choose one method, define it precisely, and apply it consistently.
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Only in the second step, in the shipping center when entering the serial number, does Xentral recognize whether the item is subject to margin scheme taxation. The invoice should therefore only be created after this entry. Use a two-stage picking process for this.
Revenue account 1 |
Account assignment for part 1 of the sales position. |
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Article for difference |
The item created for the margin scheme taxation of revenue 1. |
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Revenue account 2 |
Account assignment for part 2 of the sales position. |
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Article for difference |
The item created for the margin scheme taxation of revenue 2. |
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Article custom field for goods receipt |
Option 1: Select a custom field (type: Checkbox). If an item in a purchase order has this custom field activated — i.e., a checkbox is ticked in the position — the item appears in the Differenzbesteuerung module after goods receipt. NoteUse only one of options 1 or 2 and leave the other field empty. |
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Template for legal tax notice |
Text field for a tax law notice required for your business. The legal requirement is to mark margin scheme taxation on the invoice. WarningMake sure which tax regulations apply to your business by consulting your local tax office or tax authority. |
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Add articles when storing in warehouse |
Option 2: Used items are posted to this warehouse for margin scheme taxation upon goods receipt. Every time an item is stored in this warehouse, a new entry is added in the Overview tab. NoteUse only one of options 1 or 2 and leave the other field empty. |
Steps:
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In the item master data, create one item for margin scheme taxation for revenue 1 and another for revenue 2. The item name and number are sufficient — for example, item descriptions 'Difference 1' and 'Difference 2'.
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Enter the respective item in the Article for difference field and assign an account code for your internal accounting in the Revenue account 1+2 fields.
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Enter the required margin scheme taxation label for printing on your invoice. You will find a text field Template for legal tax notice that you can customize accordingly. This ensures that all tax law requirements are met and your invoicing runs correctly.
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Click on Save.
Warning
Make sure which tax regulations apply to your business by consulting your local tax office or tax authority.
Example for printing on an invoice: 'Differenzbesteuerung nach § 25a UStG' (as of 06/2024)
Select one option for linking and tracking items from purchase order through storage to delivery and invoicing:
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'Article custom field for goods receipt': The custom field applies within the purchase order; the new option can be ticked as a checkbox in the order position. From this point on, margin scheme taxation is used for the item.
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'Add articles when storing in warehouse': The warehouse is posted from the purchase order via goods receipt. The item simply needs to be in this warehouse when it arrives from goods receipt. From this point on, margin scheme taxation is used.
The assignment is made via the serial number used in the process.
Note
Choose one option and leave the other setting empty.
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Define a custom field in the item settings that activates the item option in the Purchase Order module. Define a custom field that you are not currently using and name it, for example, 'Margin scheme'.
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Set the custom field as a Checkbox.
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Activate the custom field for the document type Purchase order by ticking the checkbox there.
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Click on Save.
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Go back to the settings for Differenzbesteuerung and select this custom field in the dropdown for 'Article custom field for goods receipt'.
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Click on Save.
Note
In the purchase order, a selection (= checkbox) for margin scheme taxation is displayed in the positions.
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Create a new warehouse location in the warehouse management and name it, for example, 'Warehouse Margin Scheme'.
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Create a storage location (= shelf) in this warehouse and name it, for example, 'Warehouse Margin Scheme_001'.
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Go back to the settings for Differenzbesteuerung and select this warehouse in the dropdown for 'Add articles when storing in warehouse'.
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Click on Save.
Note
Items posted via this warehouse location are subject to margin scheme taxation.
Create an item in the item master data that is to be billed under margin scheme taxation. Alternatively, select an existing item.
Steps:
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Create a new item, for example 'Mobile Phone Margin Scheme Item Sales'.
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Set the item as a stock item.
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Activate serial number management for this item in the warehouse: store + use originals.
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Optional: Also activate Purchase from all suppliers for this item if you create multiple 'suppliers' for the same item — for example, because you need to record sellers by name due to the purchase price amount.
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Click on Save.
Tip
When purchasing an item, the purchase price and the serial number of the product must be carefully documented. This is done via the purchase order system to ensure the accuracy of the data.
The item is then posted to the warehouse with the corresponding serial number. This practice makes it possible to access accurate data for later sales or audits.
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Create a new supplier. Alternatively, select an existing supplier.
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Set up a purchase price for your item 'Mobile Phone Margin Scheme Item Sales' for this supplier.
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Create a new purchase order for this supplier.
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Add your item 'Mobile Phone Margin Scheme Item Sales' to the positions.
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For the option 'Article custom field for goods receipt': Click on 'Edit position' and tick 'Margin scheme'.
For the option 'Add articles when storing in warehouse': No action is required here.
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Release and submit the purchase order.
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Navigate to Goods Receipt Package Acceptance and filter for suppliers with a pending delivery. You will find the supplier from above.
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Click on the supplier. Go to the Package acceptance tab. Note: Do not select 'Quick package acceptance' — it does not capture serial numbers.
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Select the item 'Mobile Phone Margin Scheme Item Sales' from the item list.
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Enter the quantity '1' and click on Assign.
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Enter the serial number of the item, for example 'DIFF-10001'. A unique serial number could be the device number. If the item has no serial number, you can also assign one yourself.
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Select any storage location if you are using the option 'Article custom field for goods receipt' via the custom field.
For the option via the warehouse 'Add articles when storing in warehouse', the warehouse for margin scheme taxation must be selected here.
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Click on Store item.
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The item is automatically displayed in the overview of the Differenzbesteuerung module under Purchases as a goods receipt.
Tip
When selling, the item is sold by item number and the associated serial number. The purchase price of the item is settled in the background but is not visible to the end customer.
In accounting, the correct account assignments are made automatically to ensure that only the VAT on the price difference between purchase and sale is calculated.
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Create a sales order with the item 'Mobile Phone Margin Scheme Item Sales' and release the order.
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Process the order via a two-stage picking process.
Warning
Only in 'Stage 2' in the shipping center when entering the serial number is the item transferred as subject to margin scheme taxation into a new invoice in the subsequent step.
Creating an invoice beforehand without a serial number is not possible. In this case, the item will not be subject to margin scheme taxation.
In the Differenzbesteuerung module in Xentral, you can efficiently manage VAT for trading in second-hand items. As soon as you open the module, you receive an overview of all items subject to margin scheme taxation, including the relevant incoming and outgoing data. This simplifies your accounting and ensures transparency when dealing with second-hand goods.
The highlighted entries represent an item that was sold and returned.
Under the specified invoice number, you will find the item positions created for margin scheme taxation in the Invoices module under the Positions tab.
The first and second entries cancel each other out — they are only needed for creating the PDF. The third and fourth entries are the "items for difference" as described in the settings. In the Preview tab, you will find the customer’s invoice view. Positions 2, 3, and 4 are hidden here.