eBay margin scheme in Germany: VAT only on the margin under § 25a UStG

Do you buy used goods from private individuals and resell them on eBay as a business? Then you can use the margin scheme (Differenzbesteuerung): VAT is due only on the difference between selling and purchase price, at 19 percent (§ 25a UStG). Sales to other EU countries too belong in your German advance return, not in the OSS return.

Last updated: 27 October 2026

In short

Condition: As a reseller you bought the goods without VAT or under the margin scheme (§ 25a (1) UStG).
Invoice: No separate VAT, but the note "Gebrauchtgegenstände/Sonderregelung" (§ 14a (6) UStG).
Other EU countries: No OSS and no tax-exempt intra-Community supply (§ 25a (7) no. 3 UStG).

Can I use the margin scheme on eBay?

§ 25a UStG applies to supplies of movable physical goods when three conditions come together (§ 25a (1) UStG):

You are a reseller. That is someone who trades commercially in movable physical goods or sells such goods at public auction in their own name.
No VAT was owed on the supply of the goods to you in the Community, or the supplier applied the margin scheme itself (§ 25a (1) no. 2 UStG). According to section 25a.1 (5) UStAE this is the case when you buy from a private individual, from a business out of its private sphere, from a small business owner, from a business whose supply is exempt with no input VAT deduction, or from another reseller who rightly applied the margin scheme.
The goods are neither precious stones nor precious metals (as defined by the customs tariff positions in the law).

If you bought the goods from a business that owed VAT on the sale, for example new from a wholesaler with VAT shown, the conditions are not met (§ 25a (1) no. 2 UStG). For ordinary used goods you do not apply for the margin scheme: it applies when the conditions are met; the law requires a declaration to the tax office only for certain art objects, collectors' items and antiques (§ 25a (2) UStG, section 25a.1 (7) UStAE). You can waive it for any single supply, unless you use the total difference (§ 25a (8) UStG, section 25a.1 (21) UStAE). On eBay too, what decides is not the platform but your purchase records.

How to calculate the VAT

The tax base is the amount by which the selling price exceeds the purchase price (§ 25a (3) UStG). The VAT is contained in that difference and is calculated out of it. The standard rate of 19 percent applies (§ 25a (5) UStG). It is set out in § 12 (1) UStG.

Step	Example
Purchase price (from a private individual)	80.00 euro
Selling price on eBay	120.00 euro
Difference (margin)	40.00 euro
Tax base: 40.00 divided by 1.19	33.61 euro
VAT: 19 percent of the tax base	6.39 euro

If the selling price does not exceed the purchase price, there is no tax base and no tax for that item. With the single-item difference, a loss on one item is not offset against the profit on another, nor carried into later periods (section 25a.1 (11) UStAE).

Total difference. For goods with a purchase price of up to 750 euro you can, instead of item by item, compare the sum of all selling prices of a period with the sum of the purchase prices (§ 25a (4) UStG). This pays off if you buy and sell continuously.

What applies to sales to other EU countries (OSS)?

If you sell margin-scheme goods to private customers in another EU country, the distance sales rule (§ 3c UStG) does not apply: § 3c (5) no. 3 UStG excludes supplies to which the margin scheme is applied, and § 25a (7) no. 3 UStG excludes the application of § 3c and the exemption for intra-Community supplies under the margin scheme. The consequence: the margin scheme is always applied in Germany (section 25a.1 (18) UStAE), and here too the VAT must not be shown separately on the invoice (§ 14a (6) sentence 2 UStG).

For your returns this means:

Advance return: You declare these sales in Germany, with the margin net of tax as the tax base and 19 percent VAT.
OSS return: Margin-scheme goods do not belong in it. More on the OSS scheme: OSS for eBay sellers: when it applies and how to file.
Mixed case: If you also sell new goods under the standard rules, keep the two apart: new goods follow the normal rules including the 10,000 euro threshold (Distance sales and § 3c UStG); for margin-scheme goods § 3c UStG does not apply.

Other tax exemptions remain untouched by the margin scheme, except the one for intra-Community supplies (§ 25a (5) sentence 2 UStG). For deliveries to countries outside the EU, clarify the individual case with your tax adviser.

What applies to invoice, listing and shipping costs?

No separate VAT. The invoice shows only the total price (§ 14a (6) sentence 2 UStG). This holds even when the buyer is a business that could otherwise deduct the VAT as input VAT (section 25a.1 (16) UStAE).
Mandatory note. The invoice carries the wording "Gebrauchtgegenstände/Sonderregelung" (§ 14a (6) UStG); art objects and collectors' items have their own wording.
Shipping costs. If you charge the buyer for shipping, it is an ancillary supply to the delivery and shares its VAT treatment, even when you charge it separately (section 3.10 (5) UStAE). It is therefore treated under the margin scheme like the item itself, and you do not show VAT separately for it either (§ 14a (6) sentence 2 UStG).

What must I record, and what goes in the advance return?

Your records must show the selling prices, the purchase prices and the tax bases (§ 25a (6) UStG). If you apply the standard rules next to the margin scheme, keep separate records. Keep the purchase document for every item.

You declare the VAT on the margin in the advance return like other sales at 19 percent; how to file is in Filing your advance VAT return online.

How do input VAT and the small business scheme fit in?

Input VAT on fees and ancillary costs. The margin scheme changes the tax base of your sales, not your input VAT deduction. For invoices from other traders, such as transport or repair, deduction remains possible under the general rules (Hamburg Chamber of Commerce). For the eBay fee invoice see eBay fees and input VAT.
Small business owners. If you use the small business rule (§ 19 UStG), you show no VAT and the margin scheme is not needed. For the limits of 25,000 and 100,000 euro, margin-scheme sales count at the amount received, not the margin (section 19.2 (2) sentence 5 UStAE). More in Advance VAT return for small business owners in Germany.

Which mistakes happen often?

Showing VAT on the invoice. For margin-scheme goods the VAT must not be shown separately (§ 14a (6) sentence 2 UStG). If you show it anyway, you owe the amount shown in addition to the VAT on the margin (section 25a.1 (16) UStAE).
Buying new goods or goods with input VAT deduction and still selling under the margin scheme. If VAT was shown separately on the purchase, the condition is missing.
Putting margin-scheme sales into the OSS return. They belong in the German advance return.
No purchase records. Without a purchase price the margin cannot be shown; the record duty in § 25a (6) UStG applies to every item.
Mixing the two regimes. Standard-rate sales and margin-scheme sales need separate records.

How VAT GPT helps

This is how you work with your eBay sales in VAT GPT:

Upload: You upload the eBay orders report as CSV. VAT GPT works out net and tax from the total using the rate in the column Inklusive MwSt.-Satz and sorts each row by dispatch and destination country.
Work out the margin: You work out the margin from selling and purchase price using your purchase records.

There is Free (basic features, free of charge), Go (30 days free with all Pro features) and Pro (€49 per month or €444 per year, each including VAT). Sending to ELSTER is part of Pro. Try for Free Now

Frequently asked questions

What is the margin scheme on eBay? A special rule under § 25a UStG for resellers: VAT is charged only on the difference between selling and purchase price, at 19 percent.

Do I have to apply for the margin scheme? No, not for ordinary used goods: it applies when the conditions are met; § 25a (2) UStG requires a declaration only for certain art objects, collectors' items and antiques. You can waive it for any single supply, unless you use the total difference (§ 25a (8) UStG).

May I show VAT on the invoice under the margin scheme? No. The invoice shows only the total price, plus the note "Gebrauchtgegenstände/Sonderregelung" (§ 14a (6) UStG).

Do margin-scheme eBay sales belong in the OSS return? No. § 3c UStG does not apply to them (§ 3c (5) no. 3, § 25a (7) no. 3 UStG); you declare them in the German advance return.

Can I supply margin-scheme goods to another EU country tax-exempt? No. The exemption for intra-Community supplies is excluded under the margin scheme (§ 25a (5) sentence 2 and (7) no. 3 UStG).

How do I calculate the VAT? Margin divided by 1.19 gives the tax base; the VAT is the margin minus the tax base. With a margin of 40 euro that is 33.61 euro and 6.39 euro of VAT.