Field help:
(2021)
Other withdrawal of property, usage and services
Specify the private shares of property, use and service withdrawals e.g. withdrawal of goods, private telephone use, private use of company equipment, performance of work on private land by employees of the business.
These are so-called free withdrawals of assets or withdrawals for private use. Private withdrawals are generally recorded with their partial value. Expense withdrawals are calculated at the cost price.
Note: A partial value is an estimate, stipulated as the "amount that a purchaser of the whole business would calculate for individual items as part of the total purchase price" (section 6 para. 1 no. 1 EStG (Income Tax Act)). It is assumed that the purchaser would continue to operate the business. The part value is generally the commercial value or market value.
Since the costs are entered as operating expenses, the private withdrawals must be recorded as net operating income amounts and VAT paid on these. The VAT attributable to the private share is to be recorded in line 16.
The requirement for this recording and taxing of private withdrawals is that the items in question were previously allocated to the company and charged with VAT paid on goods/services. This allocation is mainly documented by the previous deduction of VAT on goods/services. Therefore, if an item which was acquired privately, without VAT, is later withdrawn from the business assets, no VAT will be payable on this withdrawal.
THe following are to be recorded as private withdrawals:
- Transfer of fixed asset items to private assets e.g. company cars, computers, machinery.
- Private usage share of a vehicle which is assigned to the business assets.
- Private usage share of a company telephone or telephone line.
- Private use of part of the company building.
- Withdrawal of goods and objects at the relevant book value.
- Gratuitous noncash benefits to employees of the company, provided these are not small gifts with a value below 40 Euros.
- Other usage and service withdrawals e.g. use of company employees for private work.
- Cash withdrawals e.g. privately commissioned cash withdrawals from the business bank account of payment from the business petty cash.
