- Time of supply rules determine when a supply is considered to occur for VAT purposes
- The term tax point is commonly used but not found in legislation
- Suppliers must account for VAT once a tax point occurs and include it in the relevant return period
- Time of supply rules are used for calculating turnover for VAT registration
- They help establish the period for allocating supplies for partial exemption
- They determine when input tax can be deducted
- A tax point indicates when VAT is due but not if VAT is due
- It is necessary to confirm that a supply has been made before accounting for VAT
- The liability of the supply may also need to be considered
Source: gov.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
