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HMRC internal manual

VAT Time of supply

HM Revenue & Customs
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Legislation: EC law (Principal VAT Directive): Article 65 payments on account


Article 65

Where a payment is to be made on account before the goods or services are supplied, VAT shall become chargeable on receipt of the payment and on the amount received.


Tax becomes chargeable on receipt of a payment on account This is directly reflected in UK law as the payment element of section 6(4) of the VAT Act 1994 (see VATTOS2225).