Taxpayers who make finance lease supplies, or receive such supplies in relation to business cars and apply an input tax block, do not need to take any action as a result of the CJEU decision in EON Aset Menidjmunt, according to HMRC.
‘HMRC is considering representations made by industry representatives and has not reached a final conclusion on whether the EON decision means that [finance lease] supplies are supplies of goods rather than supplies of services or, if so, what features are decisive in determining whether a supply is of goods rather than of services,’ the department said in Revenue & Customs Brief 37/12. ‘Until and unless HMRC make a contrary announcement taxpayers should continue to treat hire supplies as set out in currently published HMRC guidance.’
HMRC said the decision also raised questions about the input tax block for finance lease cars. ‘HMRC can confirm that whether the eventual VAT treatment of FL supplies is as [a supply of] goods or as services FL cars will continue to have a 50% input tax block applied to them.’
Taxpayers who make finance lease supplies, or receive such supplies in relation to business cars and apply an input tax block, do not need to take any action as a result of the CJEU decision in EON Aset Menidjmunt, according to HMRC.
‘HMRC is considering representations made by industry representatives and has not reached a final conclusion on whether the EON decision means that [finance lease] supplies are supplies of goods rather than supplies of services or, if so, what features are decisive in determining whether a supply is of goods rather than of services,’ the department said in Revenue & Customs Brief 37/12. ‘Until and unless HMRC make a contrary announcement taxpayers should continue to treat hire supplies as set out in currently published HMRC guidance.’
HMRC said the decision also raised questions about the input tax block for finance lease cars. ‘HMRC can confirm that whether the eventual VAT treatment of FL supplies is as [a supply of] goods or as services FL cars will continue to have a 50% input tax block applied to them.’
