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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 66 other times at which tax may be chargeable


Article 66

By way of derogation from Articles 63, 64 and 65, Member States may provide that VAT is to become chargeable, in respect of certain transactions or certain categories of taxable person at one of the following times:

(a) no later than the time the invoice is issued;

(b) no later than the time the payment is received;

(c) where an invoice is not issued, or is issued late, within a specified period from the date of the chargeable event.

The derogation provided for in the first paragraph shall not, however, apply to supplies of services in respect of which VAT is payable by the customer pursuant to Article 196.


This provides alternative times at which tax can be made to be chargeable. UK law makes extensive use of these options. So much so that they form the basis for most of our ‘actual’ time of supply rules (see VATTOS5000) and special rules (see VATTOS3400).