12.1.e. Who is responsible for issuing a tax invoice when a customer purchases a car under a hire purchase agreement?

Under normal circumstances the car is owned by a finance company until such time as a customer is found. At such time to facilitate the sale under a hire purchase agreement a series of simultaneous transactions occur.

  • The finance company will sell the car to the dealer. The finance company should issue a tax invoice to the dealer.
  • The dealer will then sell the car to a finance company to facilitate the hire purchase. The dealer should issue a tax invoice to the finance company.
  • The dealer, as agent for the finance company, sells the car to the customer under a hire purchase contract. The tax invoice should be issued to the customer by the finance company.
    Last modified: 07 Jun 2012QC 16411