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Withdrawing or giving away goods: § 3(1b) UStG
The module’s worked examples, then cases to attempt before revealing their solution · 2 sections · 296 words · 3 min
Worked example
A wine present above the limit
An agency gives a client wine worth €80 net plus €15.20 VAT when a project ends. Because €50 is exceeded, the gift does not reduce profit, and § 15(1a) UStG excludes the input tax. The condition of § 3(1b) second sentence is therefore missing: no deemed supply arises, and the €15.20 remains a cost.
Practical case
A bicycle dealer in December
A bicycle dealer filing monthly advance returns takes an e-bike from his stock for his daughter in December 2026. He had bought it in spring for €2,400 net and deducted the input tax; in December the same model costs €2,100 net from the wholesaler plus €50 freight. He also gives a business partner a cycle helmet he bought for €90 net. What VAT does he owe for the two transactions, and in which return period?
Hint: For the e-bike, check the timing and the incidental costs first; for the helmet, the income-tax limit and what it means for input tax.
Show the solution
The e-bike is a withdrawal under § 3(1b) first sentence no. 1 UStG, and input tax was deducted. Under § 10(4) no. 1 the taxable amount is the purchase price at the time of withdrawal plus incidental costs, i.e. €2,100 plus €50, together €2,150. The tax is 19 percent of that, €408.50. As a gift to a non-employee, the helmet exceeds the €50 of § 4(5) first sentence no. 1 EStG. Input tax on it is excluded under § 15(1a) UStG, any input tax already deducted must be corrected, and without input-tax deduction no deemed supply arises. Under § 13(1) no. 2 the tax on the e-bike arises at the end of December.
Answer: €408.50 for the e-bike in the December return; for the helmet no deemed supply, but no input tax either
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