Slovakia: VAT rules clarified for leasing contracts with purchase option
The amendment applies to contracts made on or after January 1, 2025, without affect on prior agreements.
The tax authority proposed a guide to clarify the value added tax (VAT) application for leasing contracts with a purchase option, effective January 1, 2025.
Following the Mercedes Benz Financial Services UK case, these contracts are treated as supply of goods if the option to purchase is economically rational. The amendment applies to contracts made on or after January 1, 2025, without affect on prior agreements. Insurance for leased goods is excluded from VAT taxable amount, treated as separate supply, with invoicing guidance provided.
For more information, contact a KPMG tax professional in Slovakia:
Elvira Ungerova | eungerova@kpmg.sk