In case of closed-end financial leasing, after acceptance-transfer of the leasing asset to the client, an invoice is issued for the entire principal, according to the repayment plan of the leasing contract, and the VAT attached to it.

The lessee must pay VAT on this invoice immediately after its issuance, and the tax base of the invoice is repaid in installments according to the repayment plan.

VAT is not charged on the interest in the monthly installments under the repayment plan.

Upon full payment of the obligations under the lease agreement, the asset becomes property of the client, and until then it is legally the property of the lessor and is registered in his name.