Companies returning a vehicle without exercising the purchase option shall not invoice VAT

The tax treatment of the termination of financial leasing contracts often generates operational doubts, especially regarding the return of the assets. The Dirección General de Tributos (DGT) has specified the tax classification of this scenario when the lessee decides not to acquire the asset.

What the DGT has resolved

The inquiry analyzes whether the return of a vehicle to the lessor determines the accrual of Value Added Tax (IVA) and whether there is an obligation to issue an invoice for said delivery. The criteria establish that financial leasing is considered a provision of services until the lessee expresses their explicit will to exercise the purchase option.

Consequently, if there is no commitment to purchase, the return of the asset at the end of the contract does not trigger the tax, as no act of consumption occurs that fits within current regulations. The resolution is based on Law 37/1992 and Royal Decree 1619/2012.

What it means for you

For companies operating with renting or leasing modalities, this clarification eliminates the need to perform invoicing operations for the mere delivery of the vehicle at the end of the contract. If your company decides not to exercise the purchase option, the return of the asset is not considered an operation subject to IVA.

This implies that the tax should not be charged for the delivery of the asset, avoiding errors in the tax settlement and the company's accounting. The absence of accrual means that the operation falls outside the scope of application of the tax at that specific moment.

What you should do

Upon the termination of a financial leasing contract, it is necessary to verify the content of the purchase option clause. If the intention is to return the vehicle, you must ensure that there is no prior commitment to acquire it that could alter the nature of the operation.

Although there is no legal obligation to issue an invoice for the return, companies may issue other documents to justify the physical delivery of the asset to maintain accounting and documentary traceability. It is fundamental to analyze each contract to determine if the return meets these conditions and to avoid issuing unnecessary invoices that could lead to tax errors.