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Should lease costs be inc. in box 9 of VAT return?

Operational lease costs not declared on arrivals Intrastat, should they be declared on VAT return?

Machines are leased from an EU member state supplier with no up front cost, which are then sublet out to customers in the UK.  A rental fee is charged per month by the EU supplier and the lease has no fixed end date so it is assumed to be more than 2 years.  For the initial acquisition I know that this needs to be declared on an arrivals SD using NoTC 90 at the current market rate of the machine, which will include this in our arrivals total, but will notify HMRC that this is not to be included in box 9 of our VAT return, which will explain the discrepancy on the initial acquisition.

My problem lies in the ongoing rental costs of the machines as I feel like this should be included in box 9 of the VAT return, as we receive invoices from our supplier.  However, I have no idea how I should reconcile the difference between box 9 of the VAT return and the arrivals SD as there is no physical acquisition of goods.  Should I be excluding the rental costs from box 9 even though it feels like it doesn't fit the criteria for exclusion as given by HMRC?



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By tom123
02nd Aug 2017 10:00

Watching with interest. I attempted a reply but then decided I wasn't sufficiently certain.

Box 9 is not meant to include services, which I would consider the ongoing rentals as.

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