On 7 October 2026, Revenue issued eBrief No. 144/26 addressing the VAT treatment of end-of-lease transactions. The guidance explains the VAT implications when a lessee acquires an asset at the end of a finance lease or operating lease, including the treatment of residual value payments, secondary rental periods, and sale-and-leaseback arrangements.
Key Takeaways
- Taxable Supply Determination: The transfer of ownership at lease end constitutes a taxable supply subject to VAT at the appropriate rate, unless an exemption applies.
- Input Credit Recovery: Lessors and lessees must correctly account for VAT on residual value payments and adjust input tax recovery accordingly.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement