At Technocircle, we sell inspected used electronics: smartphones, laptops, tablets, and other devices. Some used devices are sold with standard VAT, while others are sold under the special VAT scheme for second-hand goods.
This special scheme is indicated on the invoice and in the product information by the reference KMS § 41. If you do not deal with accounting on a daily basis, this reference may seem complicated, but in reality its principle is quite simple.
In this post, we explain in simple language what KMS § 41 means, how it is determined, who such a device is suitable for, and what both private customers and businesses should know as buyers.
KMS § 41 concerns the special VAT scheme for second-hand goods. It is applied to the resale of certain used goods, including used electronics.
Simply put, this means that VAT on a used device is not calculated in the same way as for a new device. The reason is that a used device has usually already been sold previously as new, meaning that VAT was already included in the price and paid to the state at the time of its first sale.
KMS § 41 does not mean that there is anything wrong with the device. Nor does it mean that the goods are being sold without tax accounting. It simply means that a different VAT calculation procedure is used for second-hand goods.
Close
