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HMRC internal manual

VAT Time of supply

Legislation: UK secondary law (VAT Regulations 1995): Regulation 88 supplier’s goods in possession of buyer


88(1) Except in relation to a supply mentioned in section 6(2)(c) of the Act, or to a supply to which subsections (7) and (8) of section 6 of the Act apply, where goods are supplied under an agreement whereby the supplier retains the property therein until the goods or part of them are appropriated under the agreement by the buyer and in circumstances where the whole or part of the consideration is determined at that time, a supply of any of the goods shall be treated as taking place at the earliest of the following dates-

(a) the date of appropriation by the buyer,

(b) the date when a VAT invoice is issued by the supplier, or

(c) the date when a payment is received by the supplier.

(2) If, within 14 days after appropriation of the goods or part of them by the buyer as mentioned in paragraph (1) above, the supplier issues a VAT invoice in respect of goods appropriated or a self-billed invoice fulfilling the conditions in regulation 13(3A) is issued by the customer, the provisions of section 6(5) of the Act shall apply to that supply.


This applies to goods (other than those supplied on sale or return terms or on approval) where title does not pass until they are appropriated by the buyer. Its scope is restricted to circumstances where the price payable for the goods is not agreed until the time of appropriation. It does not apply to supplies on call-off terms or “Romalpa” type agreements. Also it does not apply to intra-EC supplies. For further information see VATTOS9550.