Hire purchase, leasing and GST

Terms we use When we say: business, we mean the GST term enterprise you, we mean you as a GST registered business that has entered into a hire purchase or lease agreement as the purchaser or lessee GST credit, we mean the GST term input tax credit sale, we mean the GST term supply purchase, we mean the GST term acquisition.

Many organisations enter into hire purchase or leasing agreements to pay for and use goods over a period of time rather than paying the full cost up front.

How does hire purchase work?

Under a hire purchase agreement, you:

• purchase goods through instalment payments
• use the goods while paying for them
• do not own the goods until you have paid the final instalment.