IFRS IC agenda decision on non-refundable VAT on lease payments

The IFRS Interpretations Committee (IFRS IC) had been asked whether or not non-refundable VAT on lease payments, either because of the nature of the leased property or because of the situation of the lessee, forms part of these lease payments.

Keywords: Mazars, Thailand, IFRS, IFRS IC, VAT, IASB

27 December 2021

At its September meeting, the IFRS IC discussed this issue again, particularly in light of the comment letters received following the publication of a tentative agenda decision, and decided not to include this topic in its work plan because there was insufficient evidence that the matter has widespread and significant effect.

The IFRS IC agenda decision, which in consequence contains no analysis, was endorsed by the International Accounting Standards Board (IASB) at its October 2021 meeting, and published as an addendum to September's IFRIC Update (accessible here).