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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: Ministry of Defence contractors: approval procedure

Form of application

Applications should be made on contractor’s normal letter head and signed by the person authorised to sign the VAT return. Applications on behalf of a VAT group registration are to be made by the representative member.

VALUE ADDED TAX - APPLICATION FOR A DIRECTION UNDER SECTION 6(10)(b) OF THE VAT ACT 1994

We request that supplies of goods and/or services by …………………………. (insert name of applicant company or group registration) under government contracts where the consideration is not ascertained or ascertainable at or before the time when the goods are removed or the services performed, shall be treated as taking place at the end of the day on which a VAT invoice is issued or a payment is received, to the extent covered by the invoice or payment, but in any case not later than 6 years after the goods are removed or the services performed.

We understand that the times of supply established by this direction do not override any that may be established in advance of the time when the goods are removed or the services performed.

We further request that on the issue of the above mentioned direction, any earlier direction granting an extension to the time in which to issue a VAT invoice for these supplies for the purpose of establishing a time of supply, be cancelled.

Form of direction

Provided the application is in order and you are satisfied that it is entirely justified, a notice of direction may be issued in the form set out below. A copy of the direction should be retained on EF. It should be noted that one of the effects of the direction is to cancel the centrally agreed extensions to the 14 day rule where they would otherwise have applied to the supplies covered by the direction.

To: (Name and address of applicant)

VALUE ADDED TAX - DIRECTION UNDER SECTION 6(10)(b) OF THE VAT ACT 1994.

In exercise of their powers under section 6(10)(b) of the VAT Act 1994 the Commissioners for Her Majesty’s Revenue & Customs hereby direct that the supplies of goods and/or services by …………………………………. (insert name of applicant company or group registration) under government contracts where the consideration is not ascertained or ascertainable at or before the time when the goods are removed or the services performed, shall be treated as taking place at the end of the day on which a VAT invoice is issued or a payment is received, to the extent covered by the invoice or payment, but in any case not later than 6 years after the goods are removed or the services performed.

The times of supply established by this direction do not override any that may be established in advance of the time when the goods are removed or the services performed. Furthermore, any earlier direction granting an extension to the time in which to issue a VAT invoice for these supplies for the purpose of establishing a time of supply, is hereby cancelled.

This direction remains in force until you request otherwise or it is revoked.

Date:

Signature:

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