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HMRC internal manual

VAT Time of supply

Tax points for specific types of supply: Continuous supplies of services: Background

Regulation 90 of the VAT Regulations 1995 (see VATTOS2355) provides special time of supply rules for what are generally referred to as continuous supplies of services. More specifically it applies in circumstances where services are supplied both for a period and under terms that provide for the consideration to be determined, or payable, periodically or from time to time. The tax points are restricted to the issue of a VAT invoice or the receipt of a payment, which ever is the earlier.

As a result there is no basic tax point in these circumstances. Nevertheless, there are special rules that apply in some circumstances where there is a delay beyond one year in issuing a VAT invoice or receiving a payment - see VATTOS9170 (see also VATTOS9375 in the case of short term leases of land and property)