In the auto trade, it’s not monthly revenue that matters, but the individual vehicle. A profit is only realized when the purchase price, reconditioning, transportation, and selling price all align. That’s why we record every purchase and sale by VIN, so that every transaction can be tracked.
Used cars are often bought from private individuals and resold under the margin scheme, while other vehicles are taxed normally. Your tax advisor decides which method is allowed for each vehicle. We post exactly as you write your invoices and flag any discrepancies we notice.
Many dealers sell abroad: to other EU countries and to non-EU countries. In these cases, the tax treatment depends on documentation such as a certificate of arrival, an export confirmation, and the buyer’s identity. If any documentation is missing, a tax-exempt sale can quickly become a taxable one. We make sure the documentation for each vehicle is complete in the portal.
There are also trade-ins, down payments, financing through banks and leasing companies, warranty agreements, and, for repair shops, a parts inventory with third-party services. At the end of the month, all of this should be reflected in a vehicle inventory and open items that match the actual situation on the lot.
Money also follows its own path in the auto trade. Buyers pay in cash, by bank transfer, through a financing bank, or by trading in a vehicle. For cash payments above certain amounts, dealers have obligations under the Money Laundering Act, such as verifying the buyer’s identity. You fulfill these obligations yourself. We record cash payments only with a receipt and in the cash book, and we’ll contact you if a cash amount is unusually high or a receipt is missing.
