22.01.2016BMF issues guidance on triangular leasing relationships
Determination of the parties of a supply of assets for leasing purposes depends on the contractual agreements
Germany’s Federal Ministry of Finance (BMF) issued a circular on 31 August 2015 that provides guidance on the allocation of a VAT supply in a triangular relationship between a supplier, lessor and lessee. The guidance applies to all open cases.
A common procedure is for a person to acquire investment goods by ordering the goods in its own name from a supplier followed by concluding a leasing agreement with a lessor. By entering into the sales contract with the supplier, the lessor assumes all obligations and rights under the sales contract.
The BMF circular clarifies that, in such cases, the supplier and the recipient of the supply of the leased goods should be determined from a VAT perspective based on the contractual agreements in existence at the time the goods are delivered to the future lessee. While any change in the underlying contractual relationship (including the parties involved) after the goods are delivered should be disregarded for VAT purposes, all contractual changes before delivery must be taken into account
The guidance elaborates, in particular, on the following situations:
- Where the lessor enters into the contract before the supplier delivers the goods to the lessee, the lessor will be considered the recipient of the supplied goods. Depending on the allocation for income tax purposes, the subsequent lease between the lessor and the lessee would be considered a leasing service or a supply of the goods.
- Where the lessor enters into the contract after the supplier delivers the goods to the lessee, the supply will be between the supplier and the lessee. In this case, the lessor merely is granting a credit to the lessee and no taxable transaction would take place between the supplier and the lessor.
Companies should be aware of the different VAT treatment as outlined in the BMF guidance when entering into new leasing contracts.
| www.deloitte-tax-news.de | Diese Mandanteninformation enthält ausschließlich allgemeine Informationen, die nicht geeignet sind, den besonderen Umständen eines Einzelfalles gerecht zu werden. Sie hat nicht den Sinn, Grundlage für wirtschaftliche oder sonstige Entscheidungen jedweder Art zu sein. Sie stellt keine Beratung, Auskunft oder ein rechtsverbindliches Angebot dar und ist auch nicht geeignet, eine persönliche Beratung zu ersetzen. Sollte jemand Entscheidungen jedweder Art auf Inhalte dieser Mandanteninformation oder Teile davon stützen, handelt dieser ausschließlich auf eigenes Risiko. Deloitte GmbH übernimmt keinerlei Garantie oder Gewährleistung noch haftet sie in irgendeiner anderen Weise für den Inhalt dieser Mandanteninformation. Aus diesem Grunde empfehlen wir stets, eine persönliche Beratung einzuholen.
This client information exclusively contains general information not suitable for addressing the particular circumstances of any individual case. Its purpose is not to be used as a basis for commercial decisions or decisions of any other kind. This client information does neither constitute any advice nor any legally binding information or offer and shall not be deemed suitable for substituting personal advice under any circumstances. Should you base decisions of any kind on the contents of this client information or extracts therefrom, you act solely at your own risk. Deloitte GmbH will not assume any guarantee nor warranty and will not be liable in any other form for the content of this client information. Therefore, we always recommend to obtain personal advice. |