In addition, a deposit may be recovered by the supplier as part of the financing contract procedure. It will first be received by the supplier as a representative of the financial company, but will then be immediately “received” from the supplier as a partial payment for delivery to the financial company. Again, unless a basic tax point or a VAT invoice is availabe, a payment tax point has been created for both the supplier and the financial company. You will see from these examples that the effect of a prepayment is determined by the circumstances in which it is received. All types of businesses will have to buy large assets at some point and, as companies rarely lag in cash to buy that cash, the company will have to decide whether to enter into a tempes sale or a financing lease. Under the judgment of the Court of Justice in the Mercedes Benz Financial Services (MBFS) C-164/16 (see VATSC10172), certain contracts that may be called lease-sale contracts are processed for VAT purposes, which are considered rental and service transactions (not as deliveries of goods and separate delivery of credit). This is the personal purchase of contracts (PCPs) or similar agreements for which the contract provides for an optional material payment. These discretionary payments can be set at different levels: the tax point for separate delivery is the date of payment of interest. If the payments contain an item attributable to the credit, it means that a tax point occurs at each payment receipt. It is recognized that some providers may have difficulty isolating credit charges when the agreement provides for a fixed interest rate. Under these conditions, a housing tax centre may be appropriate (see VATTOS6300).

Goods delivered during the lease-sale or as part of a credit or conditional sales contract are generally treated in the same way as a sale of property subject to a prior title. This means that the delivery date is linked to the basic tax point, unless the supplier issues a VAT bill. The point of the property tax for delivery to the customer is, in most cases, the date of delivery or withdrawal of the goods. If there are two deliveries (for example. B to and by a financial company), this is the tax basis for the delivery of the customer by the financial company. The point of the property tax for delivery to the financial company is usually made on the date the goods are made available to the financial company. Unless the agreement is otherwise stated, it may be the effective date of the financial agreement, possibly on the date it was signed by the last party. In some cases, the financial document also serves as a VAT invoice when it is issued to the customer and normal delivery times apply.