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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 82 services from outside the UK

Law (Until 31 December 2009)

  1. Services which are treated as made by a taxable person under section 8(1) of the Act shall be treated as being supplied when the supplies are paid for or, if the consideration is not in money, on the last day of the prescribed accounting period in which the services are performed.

Law (From 1 January 2010)

82 (1) This paragraph applies to services which are treated as being made by a person under section 8(1) of the Act which are not services to which paragraph (3) below applies.

(2) Subject to paragraphs (5) and (7) below, the services to which paragraph (1) above applies shall be treated as being made when they are performed.

(3) This paragraph applies to services which are treated as being made by a person under section 8(1) of the Act and which are supplied for a period for a consideration the whole or part of which is determined or payable periodically or from time to time.

(4) Subject to paragraphs (5), (6) and (7) below, services to which paragraph (3) above applies shall be treated as separately and successively made at the end of the periods in respect of which payments are made or invoices issued and to the extent covered by the relevant payment or invoice.

(5) Where—

(a)in the case of a supply of services to which paragraph (1) above applies, a payment is made in respect of the supply before the time applicable under paragraph (2) above, or

(b)in the case of services to which paragraph (3) above applies, either—

(i)a payment is made at a time that is earlier than the end of the period to which it relates, or

(ii)a payment is made which is not made in respect of any identified period, or

(c)a payment is made in respect of services—

(i)which are performed on or before 31st December 2009, or

(ii)in respect of which a period as described in paragraph (4) above has ended on or before that date, or

(iii)which the recipient has received the benefit of on or before that date,

the services shall be treated as being made at the time the payment is made.

(6) Where the supply of services to which paragraph (3) above applies—

(a)commences before 1st January and continues after 31st December of any year, and

(b)during that year no invoice is issued that has effect for the purposes of paragraph (4) above, and

(c)no payment is made in respect of that supply,

the services supplied during that year shall be treated as being supplied on the 31st December of that year to the extent that the recipient has received the benefit of them.

(7) Services for which the consideration is not in money and which have been supplied during a period which—

(a)commences on the day following the last day of the last complete prescribed accounting period( ) in 2009 which is applicable to the recipient of the services, and

(b)ends on 31st December 2009,

shall be treated as being supplied on 31st December 2009.

Commentary

This applies to what are often called reverse charge services. These are services received from outside the UK in circumstances where the UK recipient is required to account for the VAT on the supply. The regulation is made under the powers contained in section 8(4) of the VAT Act 1994. For further information see VATTOS9450.