- A company using the VAT cash method asked how to claim input tax credit when leasing a car under financial leasing and paying in installments over 24 months.
- Tax authorities say the lessor must charge VAT and issue/register the tax invoice on the date the car is actually transferred.
- For the lessee using the cash method, VAT credit arises not at delivery, but each time a lease payment is made, in the amount of VAT paid with that installment.
- The same tax invoice issued on transfer serves as the basis for all partial VAT credits.
- This applies only if the leased asset is used in operations that also fall under the cash method.
Source: news.dtkt.ua
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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