Remuneration under value added tax law for 0 % financing

The interest rebate for the customer in the case of 0 % financing has no effect on the amount of the sales tax charge in the case of the underlying supply of goods.

In 0 % financing, the customer pays for his purchase in installments to a credit institution. However, the installments taken together are no higher than the purchase price in the case of immediate cash payment. As this is a sales promotion measure, the seller usually bears the costs by not being paid the full purchase price by the financing bank. However, the Federal Fiscal Court is convinced that the interest retained in this way does not reduce the consideration for the delivery of goods subject to VAT even if the seller states in the invoice to the customer that he is granting him a discount in the amount of the interest.