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.

If the client wishes not to pay VAT immediately, the amount of VAT is added to the principal and rescheduled for the entire term of the contract, earning interest together with the principal.

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.