The ECJ rejected HMRC`s arguments. In order to be a contract for the supply of goods under Article 14, it must be concluded that “ownership of the goods must be automatically acquired by the lessor if the performance of the contract is normal over the duration of the contract” (stand ). This contractual result (the transfer of ownership) is “incompatible with a real economic alternative for the taker” (stand ). If, as here, the lessor has a real option not to exercise the purchase option at the end of the period, it is a service contract. As a result, VAT is payable only on monthly payments. The point of the property tax for delivery to the customer is, in most cases, the date of delivery or withdrawal of the goods. If there are two deliveries (for example. B to and by a financial company), this is the tax basis for the delivery of the customer by the financial company. The point of the property tax for delivery to the financial company is usually made on the date the goods are made available to the financial company. Unless the agreement is otherwise stated, it may be the effective date of the financial agreement, possibly on the date it was signed by the last party.
In some cases, the financial document also serves as a VAT invoice when it is issued to the customer and normal delivery times apply. A VAT invoice issued to the customer, whether it is the agreement or a traditional VAT invoice, creates the tax point for the delivery if it is issued in advance or within 14 days by the basic tax point. It is necessary to demonstrate to HMRC that the vehicle is intended only for commercial purposes in the context of the lease-sale. It cannot be used for private use. If this applies to both, you can only recover the vat share. Up to 50%. The tax point for separate delivery is the date of payment of interest. If the payments contain an item attributable to the credit, it means that a tax point occurs at each payment receipt. It is recognized that some providers may have difficulty isolating credit charges when the agreement provides for a fixed interest rate. Under these conditions, a housing tax centre may be appropriate (see VATTOS6300). In addition, a deposit may be recovered by the supplier as part of the financing contract procedure.
It will first be received by the supplier as a representative of the financial company, but will then be immediately “received” from the supplier as a partial payment for delivery to the financial company. Again, unless a basic tax point or a VAT invoice is availabe, a payment tax point has been created for both the supplier and the financial company. You will see from these examples that the effect of a prepayment is determined by the circumstances in which it is received. You claim VAT refund on a rental purchase on your next VAT return. This is quarterly or monthly if you have been registered for 12 months or more. You can normally collect VAT on a rental purchase up to 4 years after signing the contract. Goods delivered during the lease-sale or as part of a credit or conditional sales contract are generally treated in the same way as a sale of property subject to a prior title. This means that the delivery date is linked to the basic tax point, unless the supplier issues a VAT bill.