Tax point for temporary reduced rate of VAT

Tax point for temporary reduced rate of VAT for service performed before the rate changed.

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We are a community centre operating a cinema.  The tickets are normally purchased in advance but we have a situation where we need to invoice a customer now (November 2021), when the rate is 12.5%, for a block booking in September 2021, when the rate was 5%.  Is the tax point the date of the screening or of the invoice?  Thank you.

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By paul.benny
10th Nov 2021 11:16

The covid-related concessions didn't alter the basics of tax point, which is the earliest of
- raising invoice
- receiving payment
- supply of goods/provision of service

Your screening was in September, so I vote the 5% applies. I'm sure actual VAT experts will be along shortly to confirm.

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Replying to paul.benny:
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By Paul Crowley
10th Nov 2021 11:54

+1
Supply took place in Sept at 5%

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By Susan Marco
10th Nov 2021 12:03

Thank you so much Paul(s)!

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VAT
By Jason Croke
10th Nov 2021 12:04

+1 agree

Basic tax point is date of event/performance, basic tax point can be over ridden by an actual tax point being date of invoice or date of payment, but basic tax point also still stands, so event was September, VAT rate in September was 5%, so issue invoice at 5%. For avoidance of doubt, maybe show on the description the event was in September in case HMRC ever check and jump to conclusions.

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