- Sale and leaseback lets a business sell an asset to a leasing company, receive immediate liquidity, and keep using the asset under a finance lease, often with an end-of-term purchase option.
- The transaction must be assessed as a coordinated structure covering sale price, lease payments, buyback price, capital gain treatment, deductibility of lease costs, and VAT consequences.
- Particular caution is needed in distressed situations, because losing ownership of an essential asset while still owing lease instalments can jeopardize business continuity.
Source: commercialistatelematico.com
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.
Latest Posts in "Italy"
- Court Convicts Six in €520 Million VAT Fraud and Mafia Laundering Scheme
- VAT Treatment of Colocation Services with Private Cage in an Italian Data Center
- Mafia-Linked VAT Fraud Syndicate Convicted in €520 Million EPPO Case
- Anti-Economic Costs: New Rules on Deductibility and VAT
- Price and Profit of Crime as Distinct Legal Categories in False Invoicing Cases
