Page 27 - P6 Slide Taxation - Lecture Day 3 - VAT Part 3

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