When does the 30 day rule NOT apply?

When does the 30 day rule NOT apply?

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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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By mohsin15
14th Nov 2014 10:12

don't you issue....

progressive bills on continuous supply cases creating tax points along the way?

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Replying to Wanderer:
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By Crash
14th Nov 2014 10:21

but......

Thank you for your response. Yes we do issue interim bills but sometimes time sits on a matter and the partner does not request a bill for two months or more, what defence can we offer to HMRC for not having billed within 30 days of "completion"? Can we argue that although the matter is dormant at the moment we have not billed because any counterclaim will render the supply as not having been completed?

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chips_at_mattersey
By Les Howard
14th Nov 2014 15:57

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.

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By The VAT Doctor
14th Nov 2014 16:54

Completed
If you are waiting to hear if there is any movement, if say there is no completion.

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