Looking at the 30 day rule for VAT (13 (5) vat regs 1995) and trying to interpret. Where a law firm supplies it services on say, litigious matters it is classed as a continuous supply. The 30 day rule states that an invoice should be provided within 30 days of the time the supply is treated as taking place. The trouble is, how do you know when a litigious matter has completed as there could be a counterclaim at any point? Do we have to bill within 30 days of completion or can we argue that it is still potentially a continuous supply? Thank you.
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don't you issue....
progressive bills on continuous supply cases creating tax points along the way?
Continuous Supply of Services
The services are deemed to be be completed, here the continuous supply rule mentioned. Under this rule, the tax point is the earlier of invoice issued or payment received. Many legal firms, and others, issue pro-forma invoices, so as to request money, but not trigger a tax point. Once the payment is received an invoice is issued.
Only once the whole issue is formally completed is there a tax point for the completion of the services.
Completed
If you are waiting to hear if there is any movement, if say there is no completion.