VATNIEU3420 - Supply and acquisition: time of supply and acquisition: UK acquisitions
Under Articles 68 and 69 of the EU Principal VAT Directive (see VATNIEU3310) the rules for determining the time of acquisition mirror those for intra-single market supplies (see the manual covering time of supply (VATTOS). Consequently, an acquisition is treated as taking place at the same time as the corresponding supply of the goods in the member state of dispatch. See Para 28 of ECJ X v Skatteverket C-84/09 “Swedish Yacht case” VATNINMT3600.
“the intra-Community supply of goods and their intra-Community acquisition are, in fact, one and the same financial transaction”
This is implemented in Northern Ireland by paragraph 4(1) of Schedule 9ZA.
4(1) For the purposes of this Act, the normal rule for determining the time that goods were acquired from a member state is that they are treated as being acquired on the earlier of—
(a) the 15th day of the month after the month in which the first removal of the goods occurs, and
(b) the day a relevant invoice is issued in respect of the transaction in pursuance of which the goods were acquired.
A relevant invoice being one issued by the supplier that’s equivalent to a UK tax invoice paragraph 4(4) of Schedule 9ZA.
4(4) In sub-paragraph (1) “relevant invoice” means an invoice of a description prescribed by regulations made by the Commissioners.
Regulations 83 of the VAT Regulations 1995 defines the meaning of invoice for the purposes of the time of acquisition.
Regulation 83
Where the time that goods are acquired from another member state falls to be determined in accordance with paragraph 4(1)(b) of Schedule 9ZA to the Act by reference to the day of the issue, in respect of the transaction in pursuance of which the goods are acquired, of an invoice of such description as the Commissioners may by regulations prescribe, the invoice shall be one which is issued by the supplier or the customer and which, in either case, is issued under the provisions of the law of the member state where the goods were supplied, corresponding in relation to that member state to the provisions of regulations 13, 13A and 14.]
First removal means when they are first removed from the member state of origin as part of the supply and acquisition, paragraph 4(5) of Schedule 9ZA VATA 94.
(5) For the purposes of this Act “first removal”, in relation to goods acquired, means the first removal of the goods in the course of the transaction in pursuance of which they are acquired.
Payment for the goods does not create a tax point for acquisitions. But the invoice issued in response to a payment might create the time of acquisition for the amount involved.
Regulation 26 of VAT Regulations 1995
(26) Where the time of the acquisition of any goods from another member state is determined by reference to the issue of an invoice such as is described in regulation 83, VAT shall be accounted for and paid in respect of the acquisition only on so much of its value as is shown on that invoice.