A lease may be granted on terms that require the person to whom the lease is granted to pay:
- Ìý
•ÌýÌýÌýÌý rental payments at periodic intervals, for example, monthly intervals, but no premium on the grant of the lease
- Ìý
•ÌýÌýÌýÌý a premium on the grant of the lease, but no periodic rental payments
- Ìý
•ÌýÌýÌýÌý a premium on the grant of the lease and periodic rental payments
To identify the VAT treatment of the payment of a premium or a periodic rental payment it can be appropriate to ask the three questions in the table below. If the payment of a premium or a periodic rental payment is within the scope of VAT, but does not qualify for the zero rate of VAT or exemption from VAT, the payment is subject to VAT at the standard rate.
| Question | Illustrative example | Commentary |
| Is the payment within the scope of VAT? | An example of a payment that is |
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Web page updated on 17 Mar 2025 14:21