Financial Lease with Delivery of Goods

Basic principles

If certain conditions are met in the case of financial leasing, the leasing company is obliged to pay VAT on the taxable supply (handover of the subject of the lease) for the entire volume of the anticipated performance under the contract and to issue the relevant tax document with quantified VAT to the customer.

The possibility to process financial leasing with the delivery of goods has been added to the OneCore system – legislative regulation of financial leasing processing. The specificity of this scheme is that a tax document is issued for VAT on the contract at the beginning of the contract, i.e. in mode of delivery of goods to the customer as of the handover date and other supplies are tax-free.

On the other hand, a regular financial lease is operated under the tax regime of the supply of a service, i.e. each supply (instalment, etc.) is charged with VAT.

The assessment of whether a given leasing contract should be established in the mode of supply of services or delivery of goods is fully the responsibility of the leasing company.

The basic principle of the solution is:

• Mark the product definition (Financing Product Type and Financing Product) with the Leasing with Delivery of Goods flag and apply this flag to the contract

• Calculate all tax bases and VAT as for a regular lease in the mode of supply of services (instalments, insurance, fees, ...)

• During the complete calculation/recalculation of the contract (i.e. there must be a contract payment calendar), generate new calculation inputs of the contract with the variant VAT – supply of goods, which contain the sum of the base and VAT from the entire contract (according to the VAT posting groups of goods) for individual tax rates

• Generate and post a tax document for leasing with delivery of goods based on calculated calculation inputs during activation

• Possibility to cancel this document by generating a correction document

• VAT for individual supplies to be charged

  • charge the instalments and the initial fee with a substitute VAT posting group (excluding tax); according to the settings on the contract,

  • Contract Transfer Fee = Individual Invoice, VAT according to the settings on the Std Code. sales

  • Individual invoices according to the lines of the relevant standard sales code based on the filter of the Financing Product Type for leasing with delivery of goods (no need to set it up, individual invoices are not part of the tax base of leasing with delivery of goods, i.e. VAT will be according to the invoiced supply)

• Generate differential calculation inputs on change and post tax credit / debit note based on them (by sign)

• When transferring (cese), post a credit memo to the original customer and a new tax invoice to the new customer

• Modify any prints of the payment documents so that the payment document is not a tax document, but at the same time the prints of the documents behave in the same way as in the "Payment calendar is a tax document" mode, i.e. the payment document is printed as a payment prescription and detailed documents from the posting of payments are not printed.

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