- In a sale with retention of title for movable goods, legal ownership passes only with payment of the final installment, but the economic and fiscal effects generally arise on delivery.
- For VAT, the transaction is normally treated as completed at delivery, and the invoice is issued for the full consideration at that time rather than when the last installment is paid.
- For accounting and direct tax reporting, the seller recognizes revenue and a receivable at delivery, while the buyer recognizes the asset and related liability at delivery.
- Risk typically transfers to the buyer upon delivery, even though title remains with the seller until the final payment.
- If the buyer misses an installment, the seller cannot automatically terminate the contract unless the unpaid amount exceeds one-eighth of the price; protection in insolvency also depends on the enforceability of the retention clause against third parties/proceedings.
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.
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