Definition
Under differential taxation, VAT is only charged on the difference between the purchase price and the sales price, rather than on the entire sales price. If a company, e.g., purchases a machine ( service item) and resells it to another company, differential taxation prevents applying the full amount of sales tax to the same item more than once.
Important
Please note that the differential taxation does not apply if the purchased item is used for private purposes or for the company's own use. Before using the differential taxation function, familiarize yourself with the specific cases in which it may be applied.
The previous description does not contain any information on applicable tax law.
For more information on differential taxation, please contact your tax advisor or auditor.