Where there is a continuous supply of services, the time of supply is the earlier of when:

(1)a payment is received; or

(2)a VAT invoice is issued

(Value Added Tax Regulations 1995 (SI 1995/2518), reg. 90(1); Notice 700, para. 14.3).

For example, as regards a leasing supply where:

(1)there is monthly invoicing, the tax point is the end of the month to which the invoice or payment relates;

(2)there is no invoicing or payment cycle, the tax point is deemed to be 31 December of each year.

Connected persons making continuous supplies: annual tax point

For continuous supplies of services and goods between connected persons, there is a tax point at least once a year.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.