Leasing
Leasing is a method of providing finance for the use of equipment or vehicles where the customer pays a regular fee for a specified period of time.
May 3, 2011 | 25,00 EUR | answered by StB Manuela Ponikwar
Hello!
In April, I leased a vehicle through my father. Now the question is how to book it.
The leasing company debited the following:
DEBIT PER 01.05.2011
NET AMOUNT 172.67
TAX 32.81
TOTAL AMOUNT 205.48
Since my father is the lessee, I shouldn't actually book the VAT, right? However, everything is debited from my account and it was also registered in my name.
How should I book this now?
I would be very grateful for any information.
Kind regards
Dear client,
thank you for your inquiry, which I would like to answer as part of an initial consultation considering the appropriate fee as follows:
The situation presented is described as a shortened contract path. However, you are responsible for the payment yourself, so the expense should not be treated as "third-party expense" but rather as your own expense, as your father is not transferring the vehicle to you free of charge and you are economically burdened with the payment.
Since the vehicle is also registered to you, is unquestionably used for business purposes by you, and has been allocated to business assets, the deduction of leasing expenses as operating expenses for tax purposes is generally to be affirmed.
As you have already mentioned, the situation is fundamentally different for value-added tax. According to your information, you are apparently not a small business owner and are entitled to input tax deduction due to taxable output transactions.
However, the input tax deduction is tied to an invoice issued to the recipient of the service. In your case, this is not the case, so the non-deductible input tax represents a business expense for you.
However, the car leasing is based on a contractual agreement, according to which the service should actually be provided to your father, but is evidently different due to the registration of the vehicle in your name and your payment.
In this case, section 15.2 paragraph 16 of the VAT application decree provides an argumentative possibility:
If the service is actually provided to a third party, in this case you, in disregard of the claim arising from the contractual relationship, the third party may be considered the recipient of the service independently of the underlying legal relationships (Federal Fiscal Court ruling of 1 June 1989, V R 72/84, BStBl II p. 677).
An entrepreneur who, according to the principles mentioned above, is to be considered the recipient of the service for the purpose of input tax deduction, is entitled to input tax deduction under § 15 (1) of the VAT Act if and to the extent that the service was carried out for his business.
I recommend that you temporarily deduct the input tax with this argumentation. However, speak promptly with your tax officer. Legal certainty can only be provided by a paid binding ruling until the final assessment, but an early conversation can save you trouble at the end of the year.
I hope this information has been helpful to you.
Kind regards,
Manuela Ponikwar
Tax consultant
www.ponikwar.de
