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VAT tax point date

I was always under the impression that the issue of a VAT invoice before the delivery of the goods, thus enabling the customer to claim the input tax before receiving the goods and paying for them. was not permitted..

On reading VAT leaflet 700 14.2.2 it suggested this was not so.

A call to the VAT helpline confirmed that this OK.

Anycomments would be appreciated

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Tax point

The tax point is the earliest of

Date on the tax invoiceDate of deliveryDate of payment

The tax point determines when the output tax and input tax should be accounted for.

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The issue of a tax invoice before the supply of the goods does create a tax point and generally the VAT is due to be accounted for on this date. However, if the supplier or the customer is operating Cash accounting then the tax due date becomes the date of payment abnd VAT cannot be recovered until the supply is paid for.

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