Do you make every effort to make your children believe that the presents under the Christmas tree are from the Christ Child? How many cheats is it worth to you, this protection of good faith? And did you know that it also exists for you - even in tax law?

The protection of good faith states:

Anyone who honestly but erroneously assumes a lawful condition and has no reason to doubt it will not be disadvantaged if the error is later discovered.

Your legal guardian angel!

In tax law, for example, it is used in the case of differential taxation.

Example: You trade in used watches that you buy from resellers and sell without showing VAT. The advantage: VAT is only charged on the difference between the selling price and the purchase price.
But! Later it turns out that one supplier was a private individual. Now the tax office could demand that you subsequently pay VAT on the entire sales price!

However, if you assumed in good faith that the supplier was a reseller, for example because he issued an apparently correct invoice, then you may - with the consent of the tax office - continue to apply margin taxation.

👉 Would you like to navigate the tax intricacies with confidence? Contact us - we will advise you reliably and comprehensibly:
www.wsb-berater.com/kontakt

#Good faith protection #Differential taxation #Specialist terms #Tax advice #WSB