Page 27 - Chapter 32 VAT Part 3
P. 27
23. SPECIAL RULES:
INSTALMENT CREDIT AGREEMENTS
Def a 1: includes both the suspensive sale and finance lease
agreements.
Value of the supply [s 10(6)]: cash value
• excluding finance charges (because exempt financial service)
• Seller/lessor: charges output on cash value
• Purchase/lessee: claims input on cash value
Time of supply [s 9(3)(c)]: earlier of:
• delivery of goods or
• time any payment is received
• Exception: cooling-off period
