The special “second-hand” regime is a VAT taxation scheme applicable to certain categories of goods, such as used tangible movable goods, works of art, collectors’ items, and antiques. This regime is an exception from the general VAT rules and aims to avoid double taxation and ensure tax neutrality.
Conditions of Application
According to Article 312 para. (2) of the Fiscal Code, taxable resellers may apply this regime for goods purchased within the EU from:
- non-taxable persons;
- taxable persons who deliver goods exempt from VAT under Article 292 para. (2) letter g);
- small enterprises (for capital goods);
- other resellers who used the special regime at acquisition.
Definition of a Second-Hand Vehicle
A vehicle is considered new, according to Article 266 para. (3) letter b), if:
- less than 6 months have passed since its first use;
- it has not travelled more than 6,000 km.
VAT Calculation under the Special Regime
VAT is applied at a rate of 19% on the profit margin (difference between sale price and purchase price). The margin does not include VAT.
Reseller Obligations
According to Article 312 para. (14) of the Fiscal Code, resellers must:
- keep separate records for normal and special regimes;
- determine the taxable base and collected VAT for each tax period.
Registers and Invoicing
Resellers must:
- maintain special purchase and sales journals;
- record a registry to determine the taxable base;
- issue self-invoices to suppliers not required to issue invoices;
- not show collected VAT separately on invoices — only the total amount with the note “VAT included. Margin scheme – second-hand goods, Article 312 Fiscal Code.”
Regime Selection
Application of the special regime is optional and does not require tax authority notification. If not applied, the normal reverse charge regime (4426 = 4427) under Article 316 Fiscal Code applies.
Reporting Examples
Intra-community acquisitions must be reported in:
- VAT return form 300, lines 5 and 20 (and 5.1, 20.1);
- VAT recapitulative statement form 390 VIES with code A.
If the car is resold and was initially purchased under the normal regime, VAT must be applied normally — the margin scheme is not permitted.