Guidelines for Applying VAT Law on Goods Transfer via Lease Agreements in Slovakia

• The document is a methodological guideline related to the application of a specific section of the VAT Act concerning the transfer of goods under a lease agreement.
• The Financial Directorate of Slovakia issues this guideline to clarify the application of the VAT Act for goods transferred under lease agreements.
• A legal amendment effective from January 1, 2025, modifies the VAT Act in line with EU directives and court rulings, affecting tax assessment for goods transferred under lease agreements.
• Leasing with a purchase option is considered a taxable transaction under the VAT Act.
• For a lease to be classified as a supply of goods, the lease agreement must include a clause for the transfer of ownership to the lessee.
• The European Court of Justice has provided conditions under which financial leasing is considered a supply of goods.
• Ownership transfer must be automatic at the end of the lease term if the contract is fulfilled under normal circumstances.
• Extraordinary circumstances, such as contract termination due to non-compliance, do not affect the classification of the lease as a supply of goods.
• Legal certainty is emphasized, meaning the lease is considered a supply of goods if ownership is transferred to the lessee by the end of the lease term under normal conditions.
• Two conditions must be met for a lease to be classified as a supply of goods: the lease must include a clause for ownership transfer, and ownership must be acquired by the last payment under normal circumstances.

Source: financnasprava.sk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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