- The sale of vehicles often includes financing or insurance services.
- The VAT treatment of financing services provided by third parties, for which the vehicle dealer receives a commission, is a key issue.
- If the financing service is independent of the vehicle sale, it may be exempt from VAT.
- If the financing service is accessory to the main sale, it is subject to VAT.
- The accessory nature of a service is determined by its connection to the main service.
- The financing service may be considered accessory if it is not a separate goal for the customer but a means to better enjoy the main service.
- The Italian Supreme Court has ruled that financing services for vehicle sales are accessory to the main sale.
- The court found that the financing service is instrumental to the sale, as it allows customers to purchase vehicles on better terms.
- The court also found that the financing service is intended to incentivize sales.
Source: eutekne.info
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
