On 5 August 2016 at 17:04, tom p. <daedulus@xxxxxxxxxxxxx> wrote:
Last time I looked at UK VAT law, which, for the time being, should be
in line with the EU VAT law, the basic tax point is the date when all
the services have been provided, except for the invoicing, but an actual
tax point is created on the date when the invoice is raised or payment
is received, whichever is the earlier. An invoice must be issued within
14 days of the basic tax point so pay without being asked and you create
an actual tax point and should receive an invoice within 14 days of the
payment - this can then be well in advance of the basic tax point (which
is overridden by the actual tax point). The tax point determines the
VAT rate that is applicable and when payments are due to or from the
authorities so raise an invoice and you become liable for the tax
regardless of whether or not you have received a payment; there is
something to be said for persuading people to pay before you raise an
invoice:-).
For payment in advance of supply and no VAT invoice yet issued, tax point is the date of payment.
According to HM Revenue and Customs:
Deadlines
Usually VAT invoices must be issued within 30 days of the date of supply or the date of payment (if you’re paid in advance).
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Dick Franks
Dick Franks