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HMRC internal manual

VAT Time of supply

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HM Revenue & Customs
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Legislation: UK secondary law (VAT Regulations 1995): Regulation 81 goods for private use and free supply of services

Law

81(1) Where the services referred to in paragraph 5(4) of Schedule 4 to the Act are supplied for any period, they shall be treated as being supplied on the last day of the supplier’s prescribed accounting period, or of each such accounting period, in which the goods are made available or used.

(2) Where services specified in an order made by the Treasury under section 5(4) of the Act are supplied for any period, they shall be treated as being supplied on the last day of the supplier’s prescribed accounting period, or of each such accounting period, in which the services are performed.

Commentary

Regulation 81 covers two different categories of deemed supply.

Regulation 81(1) private use and so on, of business assets.

This applies where non-business use of assets is of a continuing but temporary nature. Under section 6(13) of the VAT Act 1994 (see VATTOS2260) the normal tax point for one-off supplies of this kind is the time that the goods are put to non-business use. Continuing supplies of this nature are treated on a similar basis linked to the end of the supplier’s VAT accounting period.

Regulation 81(2) deemed supplies of services

This applies to deemed supplies of services under section 5(4) of the VAT Act 1994. At the present time there is only one such order. This is the VAT (Supply of Services) Order 1993 (SI 1993/1507). You can find more about the supplies that can occur as a result of this Order in the manual covering input tax.

For further information on both of these provisions see VATTOS9600.