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HMRC internal manual

VAT Time of supply

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HM Revenue & Customs
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Accommodation tax points: Monthly invoicing

 
 
 
 

Introduction

Many suppliers invoice their sales periodically. Typically this will involve the issue of a single invoice to each customer detailing the supplies made during the preceding monthly or 4/5 week commercial accounting period.

So long as this represents the supplier’s normal accounting practice an accommodation tax point may be allowed without the need to demonstrate that the normal tax point rules cannot be met. Applications should normally be in writing, stating whether the accommodation tax point is to be linked to the last day of the period covered by the invoice or the date of issue of the invoice. In the latter case this should not normally be permitted to exceed 14 days from the end of the commercial accounting period.

Approval for monthly invoicing should be given in the following form depending on whether the tax point is to be the last day of the invoicing period or the date of issue of the invoice. A copy of the direction should be retained on EF.

Tax point linked to last day of commercial accounting period

To: (Name and address of applicant)

VALUE ADDED TAX - TIME OF SUPPLY

In reply to your request of ………………………., the Commissioners for Her Majesty’s Revenue & Customs hereby direct that each of the under mentioned supplies which you make in the course of your business shall be treated as taking place on the last day of the calendar/accounting (delete as necessary) month in which the supply is made, except to the extent that the supply is covered by a payment received before the supply was made.

The supplies in respect of which this direction is made are as follows:

………………………………………………………………………………………………………

For other supplies, unless special directions have been given, the normal tax point rules, as explained in Notice 700 (The VAT Guide), must be followed.

Date:

Signature:

For and on behalf of the Commissioners for Her Majesty’s Revenue & Customs

Tax point linked to date of issue of invoice

To: (Name and address of applicant)

VALUE ADDED TAX - TIME OF SUPPLY

In reply to your request of ……………..,the Commissioners for Her Majesty’s Revenue & Customs hereby direct that, providing the VAT invoice for the supply concerned is issued within .…………… days after the end of the calendar/accounting (delete as necessary) month in which the supply is made, each of the under mentioned supplies which you make in the course of your business shall be treated as taking place on the date when the VAT invoice for the supply is issued by you, except to the extent that the supply is covered by a payment received before the supply was made.

The supplies in respect of which this direction is made are as follows: ..…………………………………………………………………………………………………………………………………………………

For other supplies, unless special directions have been given, the normal tax point rules, as explained in Notice 700 (The VAT Guide) must be followed.

Date:

Signature:

For and on behalf of the Commissioners for Her Majesty’s Revenue & Customs