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HMRC internal manual

VAT Time of supply

HM Revenue & Customs
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Tax points for specific types of supply: Continuous supplies of services: Delays in invoicing and payment

The timing of the issue of a VAT invoice, or the receipt of a payment, has always been vulnerable to manipulation. Often this has been aimed at delaying accounting for VAT in cases where supplies are being made to a connected business not fully taxable. To prevent this, an annual tax point was introduced from 1 October 2003 by regulation 94B of the Value Added Tax Regulations 1995 (see VATTOS2385). Subject to various limitations to its general scope, this further tax point applies to most continuous supplies of services that fall within the scope of regulation 90. The only exceptions are certain supplies involving minor interests in land and property (see VATTOS9375). This and other aspects of the rule are also described in VAT Information Sheet 14/03.