Explanation of the Slovenian Financial Administration regarding the treatment of “sale and leaseback” transactions, which states that the immediate sale and leaseback of goods between the same parties does not qualify as two separate legal transactions, if:
¬ the seller transfers (sells) the goods to another taxable person (the lessor) for the purpose of
obtaining funds as a loan and they conclude a financial leasing contract for the same goods;
¬ the transfer of the goods does not allow the lessor to dispose of them as an owner, which is also the
case if the goods remain in the possession of the previous owner (the seller).
Such transaction is considered as a service – a single financial transaction – with the purpose of increasing the liquidity of the seller.
Source Slovenian Tax Administration’s explanation no. 092-5571/2020-4 from September 8 2020
