Chapter 19 - Time of Supply Flashcards Preview

Paper 2: Corporate Tax & VAT > Chapter 19 - Time of Supply > Flashcards

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Time of Supply

Gives us the date of sale or purchase for VAT purposes. The date is crucial as it determines which VAT reutn the output or input tax is accounted for (and paid)


Basic Tax Point

For a supply, the BTP is the date the goods are delivered, made available or collected
For services, date of supply is when the services are performed - ie all work is done with exception of an invoice being raised


Basic Tax Point Override

The BTP can be overridden by a different date in two situations:
1) if there is a receipt of a payment or a tax invoice is issued on a date before the BTP date, the earlier date becomes the tax point used
2) if an earlier tax point does not apply and an invoice is issued within 14 days after the BTP, then the invoice issue date becomes the tax point



It is possible to have more than one tax point for the same supply, for example where a deposit is paid upfront and the balance paid when the goods are delivered.
The deposit and balancing payment will each have their own tax points