Basic tax points: performance of services: introduction
The basic tax point rule for a supply of services is provided by section 6(3) of the VAT Act 1994 (see VATTOS2220) and is defined as ‘the time when the services are performed’. This could be taken to mean a period of time over which a supply of services takes place. Clearly this would be impractical to apply as a means of determining when VAT is to be accounted for. It has therefore always been interpreted as meaning the point in time at which the services have been completed. This has traditionally been defined as the date when all the work, except the invoicing, is completed.