Germany’s highest tax court has requested a preliminary ruling from the CJEU which could have a profound impact on our understanding of the time of supply rule. Angela Lang-Horgan (Lang & Horgan Ltd) explains.
Have you bought your car on hire purchase? Unbeknown perhaps to the majority of the public VAT on the sum of all instalments is due when the car is delivered or collected unless you are given the option to purchase the car at the end of the hire period with a substantial balloon payment as the final instalment. This means that companies offering hire purchase agreements are regularly pre-financing the VAT for the exchequer before they receive the monies from their customers.
Can this be right? To what extent are VATable persons obliged to bear the liquidity disadvantage resulting from the collection of VAT? In its request for a preliminary ruling lodged at the CJEU...
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Germany’s highest tax court has requested a preliminary ruling from the CJEU which could have a profound impact on our understanding of the time of supply rule. Angela Lang-Horgan (Lang & Horgan Ltd) explains.
Have you bought your car on hire purchase? Unbeknown perhaps to the majority of the public VAT on the sum of all instalments is due when the car is delivered or collected unless you are given the option to purchase the car at the end of the hire period with a substantial balloon payment as the final instalment. This means that companies offering hire purchase agreements are regularly pre-financing the VAT for the exchequer before they receive the monies from their customers.
Can this be right? To what extent are VATable persons obliged to bear the liquidity disadvantage resulting from the collection of VAT? In its request for a preliminary ruling lodged at the CJEU...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
