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V3.131 Tax point

VAT charged on the supply of goods and services becomes due at the time of supply¹. The actual time of supply may be difficult to determine in many cases, and therefore the legislation sets out a comprehensive set of rules for determining when a supply of goods or services is treated as taking place for charging tax². The time when a supply is treated as taking place under these rules is referred to by HMRC as the 'tax point'³. Insofar as a definitive time can be determined, the time when it actually takes place is referred to here as the 'actual time of supply' and common sense would suggest that the actual time of supply equates closely to the basic tax point (see V3.132).

Since tax is charged when a tax point occurs, the concept of the actual time of supply is largely irrelevant. There appear to be only two exceptions to this general principle:

1. Ìý

   (1)ÌýÌýÌýÌý the situation can arise where a tax point arises in connection