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HMRC internal manual

VAT Time of supply

Legislation: EU law (Principal VAT Directive): Article 95 changes in rate


Article 95

Where rates are changed, Member States may, in the cases referred to in Articles 65 and 66, effect adjustments in order to take account of the rate applying at the time when the goods or services were supplied.

Member States may also adopt all appropriate transitional measures.


This allows Member States to impose adjustments at the time of a change in rate. Instead of being subject to the rate that applied when the tax became chargeable under Articles 65 and 66 the supply instead becomes liable to the rate in force at the chargeable event. The UK has partly adopted this in the change of rate provisions in section 88 of the VAT Act 1994 (see VATTOS2280).