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How are the rentals treated for VAT?

rentals treated VAT
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How are the rentals treated for VAT?

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The rentals are fixed and are based on the value of the asset excluding VAT. VAT is thus payable on each rental as it falls due. Hire/Lease purchase, on the other hand, requires the VAT to be paid up-front with the first rental as from an accounting perspective, the asset is treated as being owned by the lessee from day one.

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