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HMRC internal manual

VAT Time of supply

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HM Revenue & Customs
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Identifying a tax point: what is the supply?

There are various tax point permutations. Some are dictated by the timing of the various events that occur with a typical supply (for example delivery, invoicing and payment). So to identify the tax point it is first essential to first establish the chronology of these events.

The tax point can also depend on identifying what is being supplied and the contractual arrangements that apply. For example, in the construction industry regulation 93 of theVAT Regulations 1995 (see VATTOS2370) applies to supplies of construction services under a contract that provides for stage payments. Where as the normal tax point rules apply to a single payment contract. It is therefore not enough to conclude that the supply comprises construction services. It is also necessary to examine the contractual arrangements for payment for the work. Similarly different tax point rules apply to a single supply of services undertaken over a period of time as opposed to a continuous supply.