Finance Court of Hesse (FG) had to decide in the case of a ruling on the VAT assessment basis for sales of goods with corresponding 0 % financing. On its invoices, the retailer indicated an amount referred to as a discount, which was paid directly to the financing bank and reduced the taxable base of the goods delivery accordingly. The retailer’s lawsuit was however unsuccessful. The financing was considered to be ancillary to the taxable supply of the purchased goods. It does not fulfil any purpose of their own for the customer, but merely serve to make use of the supplies under optimum conditions. Appeal to the Federal Fiscal Court is pending.
Source: js-steuerberater.de
