Dealing with barter-like turnover

„According to Section 3 (12) sentence 2 of the German Turnover Tax Act (UStG), a barter-like transaction occurs if the consideration for another service consists of a delivery or another service. However, a barter-like transaction also arises if the consideration for a supply consists of another service. If, in the context of such a barter-like transaction, an additional payment in cash is also made by one of the contracting parties, this constitutes a barter-like transaction with a cash surrender. „1

So what is barter-like turnover?

In the legal sense, barter-like turnover is a type of exchange of services. The disposal company provides its disposal service and the contracting company provides a material service if valuable materials are present in the disposed material.

What does this look like in practice?

If we now look at practice, an example could be as follows:

„Entsorger GmbH is commissioned to empty the containers with construction waste at a construction site of Abfallerzeuger GmbH. After the containers were emptied, it was noticed that the containers not only contained construction waste, but at the same time old cables made of copper were thrown into the container. Since copper is a valuable metal, this is refunded to the waste disposal company GmbH.“

This is a classic case of barter-like turnover. Entsorger GmbH was commissioned to empty the containers and dispose of the construction waste, and the addition of a valuable metal in the form of the copper tubes triggered a reimbursement in return. Performance and consideration meet directly here.

So why the tegossuite?

Because tegossuite gives you the best possibility to map your business. You can map both business transactions in one order and tegossuite takes care of the entire processing for you. After the entire business transaction is completed and your clerks carry out the re-entry of the order, purchasing as well as sales can be entered in one mask.

This would then be recorded in an order. As an example, a business transaction is shown here that includes a 7 m³ container emptying of construction waste. Your driver now drives this order, empties the 7 m³ container and returns. In the subsequent subsequent entry, the copper cables with a weight of 20 KG, which were also in the container, are included in the order by your clerk. Since you want to purchase the copper cables in the course of the exchange-like turnover and remunerate your customer, these are entered as a new order line as a purchase.

You can see the entire post-recording of the order here. Both your emptying service and the disposal of the construction waste have been entered as a sales service. The purchase of the copper cables is shown in the third line of your order. The posting type Purchase shows that you are purchasing this material from your customer. In the order completion step, this document is used in collective invoicing and an automatic invoice is created for you in tegossuite.

Since you can also perform a collective billing for only one document, this case shows how it explicitly handles your order. Since your clerks have set the posting type for the copper cable to purchase, this transaction will be split into a sales invoice and a purchase credit note in your tegossuite. So you have a clear separation between credit and debit transactions in your environment, and it’s completely automated.

An important note: A purchase credit note is only created in your system if you work in self-billing with your business partner.

So what does this mean for you and your company?

For you as a waste management company, this mode of operation represents a significant simplification with exchange-like turnover, since every process that belongs to an order can also be represented in it.

The tegossuite has been developed according to our and our customers‘ „best practice“ from the last 26 years and thus combines industry expertise as well as efficient processes in one environment.

1)Radeisen, R.-R. (2019, 21.Februar). Tausch/tauschähnlicher Umsatz/ 1.2  Definition tausch-ähnlicher. . .Hauf News und Fachwissen. 
https://www.hauf inance/hauf e-f inance-of f ice-premium/tauschtauschaehnlicher-umsatz-12-def inition-tauschaehnlicher-umsatz_i-desk_PI20354_HI856458.html