When you can use the VAT margin scheme (Differenzbesteuerung):
Do you trade commercially in movable tangible goods and purchase these, amongst other sources, without the ability to deduct input tax (e.g. from private individuals)? In that case you may apply the margin scheme pursuant to Section 25a UStG (VAT Act) to determine your VAT liability. Under this scheme, VAT is calculated on the difference between the selling price and the purchase price.
Example: commercial sale of a car for 10,000 EUR, which was previously purchased from a private individual for 7,500 EUR. The VAT on this sale amounts to 399.16 EUR (10,000 EUR - 7,500 EUR = 2,500 EUR divided by 119% = 2,100.84 EUR). Without applying the margin scheme, the VAT would amount to 1,596.64 EUR. (10,000 EUR divided by 119% = 8,403.36 EUR)