RENTALS & LEASING
Vulcan Catering Equipment first for the Industry Complete Kitchen Equipment Rental.
- Annual escalation
- Capital expenditure
- Convenience to the user
- Cost effectiveness
- Cost in use
- Cost saving
- Ease of administration
- Ease of upgrade / replacement
- End of agreement options
- Flexibility
- Inflation hedge
- Off balance sheet
- Operating facilities with banks
- Psychology of use Preference over Ownership
- Tax advantages
- Technology
- VAT implications
- The VAT on a rental is raised on the monthly payment and not capitalized “upfront”, as in a lease or installment sale. The VAT is, therefore, not “financed”, resulting in lower upgrade costs and more flexibility. If VAT increases, the client claims a higher VAT rebate. Thus, an increase is not a disadvantage because a higher rental is claimed in the clients Income statement. VAT on a rental is regarded as input VAT and may be written off against any output VAT collected.
- Examples