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HMRC internal manual

VAT Time of supply

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Legislation: EC law (Principal VAT Directive): Article 67 intra-EC supplies

Law

Article 67

  1. Where, in accordance with the conditions laid down in Article 138, goods dispatched or transported to a Member State other than that in which dispatch or transport of the goods begins are supplied VAT-exempt or where goods are transferred VAT-exempt to another Member State by a taxable person for the purposes of his business, VAT shall become chargeable on the 15th day of the month following that in which the chargeable event occurs.

  2. By way of derogation from paragraph 1, VAT shall become chargeable on issue of the invoice provided for in Article 220, if that invoice is issued before the 15th day of the month following that in which the chargeable event occurs.

Commentary

Article 67 is restricted to goods and only to intra-EC movements of goods that qualify for zero rating in the Member State of departure. (Other categories of intra-EC movements are treated as domestic supplies in the Member State of departure and therefore fall within the scope of Articles 62-66.) The effect of this Article is to make the time of the supply mirror the time of acquisition that will apply in the Member State of arrival. As a result the supply is treated as taking place in the Member State of departure on either:

  • the 15th day of the month following the month in which the chargeable event (ie delivery) occurs; or
  • the date of issue of an invoice, where this occurs before the 15th day of the following month.

This is implemented in UK law as section 6(7) and (8) of the VAT Act 1994 (see VATTOS2240).