Chapter 19 Time of supply

Question 1

19.1 Introduction

Answer 1

The time of supply rules gives the date when an item is purchased and sold for VAT purposes. There is a basic tax point for all goods and services supplied.

Question 2

19.2 Basic Tax Point

Answer 2

The basic tax point is the date the goods are delivered, made available or collected. For services his is when the services are performed.

Question 3

19.3 Basic tax point overridden

Answer 3

The basic tax point can be overridden in two situations:
• Where there is no receipt of a payment on a date before the basic tax point date or the tax invoice was issued before the basic tax point date, then the earlier date becomes the actual tax point
• If the basic tax point has not been overridden by the earlier invoice or payment and a tax invoice is issued in the 14-day period after the basic tax point, then the invoice date becomes the actual tax point.

Question 4

19.4 Deposits

Answer 4

It is possible to have more than one tax point for the same supply, this is when a deposit is paid upfront and then, when the goods are delivered at a later date, the balance is paid.