Operational or financial leasing?
Nowadays, leasing is a very often chosen means when buying a car. When choosing this form of financing, we have two options: operational or financial leasing. Both have their advantages and disadvantages. Regardless of the choice you make, the biggest advantage is that you don't have to put in your own funds for all investments.
It’s worth starting with the fact that leasing is more beneficial in terms of taxation for most entrepreneurs. 
operating room. Thanks to this form of financing, the subject of leasing is disclosed by the leasing company as an asset and is responsible for depreciation. Another advantage of operational leasing is the ability to include the entire initial fee, as well as all fees or charges associated with the operation of the leased asset, as tax-free expenses. Of course, in order to use the above privileges, it is necessary to conclude a fixed-term contract. It must last at least 40% of the depreciation time of the fixed asset, which in the case of a passenger car means a period of two years.
The second form of financing is financial leasing. Thanks to him, the object will become part of the company's assets, thanks to which it will be possible to independently write off depreciation. In this situation, depreciation write-offs, the percentage of the lease payment, as well as daily operating costs are tax-free expenses of the company. “The advantage of financial leasing is that there are no restrictions on the minimum residual value and the duration of the contract. The condition is that the contract is concluded for a certain period agreed between the parties. After the expiration of the leasing period, the object becomes the property of the user and can be used later in the company or resold,” explains Mariusz Wlodarczyk, Managing Director of BZ WBK Leasing.
Another important difference between operational leasing and financial leasing is the issue of paying VAT. The first form is considered as a service that allows an entrepreneur to pay VAT in installments. Financial leasing is classified as a supply of goods, so VAT must be paid in full along with the first installment of the lease.
The last issue that separates the previously mentioned forms of leasing is the question of buying an object. In an operating lease, after the end of the contract, ownership of the facility may or may not be transferred to the lessee. More often than not, however, the buyer purchases the property after paying a predetermined ransom amount. Financial leasing is characterized by almost no redemption. The item automatically becomes the property of the tenant after payment of the last installment.
To sum up, both forms of leasing have their advantages and disadvantages. The decision to choose one or another form of financing should directly depend on what type of business activity the entrepreneur conducts, as well as on the object that he intends to acquire. In both cases, leasing is characterized by tax incentives, as well as the most simplified procedures and higher availability of financing.
