Vehicle leasing and received VAT
February 22, 2011 | 20,00 EUR | answered by Matthias Wander
Hello, we bought a car from a dealer for 22,000 euros and signed a leasing contract with Deutsche Leasing AG. The dealer cannot show VAT. We made a down payment of 4,000 euros. However, we received a payment of 21,600 euros with the explanation that the VAT will be paid out and we have to pay it to the tax office. I couldn't find anything about this in my tax program. Will the tax office be automatically notified and then demand payment from us? We are VAT-liable and make monthly advance returns. Do I have to declare this received VAT as income in the EÜ calculation? Thank you for the information.
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your commitment within the scope of an initial consultation.
I assume that you sold the car to Deut. Leasing after buying it from the dealer in order to lease it back (sale-and-lease-back). If not, please specify the case.
The sale of a company car as a so-called ancillary transaction is subject to sales tax. Therefore, the leasing company rightly paid you the VAT. You must report the revenue and the corresponding VAT in the VAT return. The tax office will not be automatically notified. Failure to report the VAT constitutes tax evasion. The received VAT must be recorded as income in the EÜR. The VAT prepayment paid to the tax office is a deductible expense, so this will balance out the transaction.
I hope this gives you an initial overview.
Best regards,
Wander
Tax advisor
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