Output VAT not on invoice date?

Do any businesses actually account for VAT on date of cash or provision of services?

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Legislation requires accounting for output VAT on services on earlier of invoice, provision of services, or receipt of cash.

I have always understood this to be effectively an anti-avoidance rule to ensure timely invoicing and therefore payment of VAT.

It would seem to be a nightmare for record-keeping to have to have a date for VAT that was not the invoice date.

Businesses which issue pro-forma invoices presumably issue the actual invoice with invoice date being the date the cash is received?

Has anyone come across any businesses which do use a date other than invoice date?

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By RAS1
15th Jun 2024 13:13

Oh, and I'm not counting those on the pure cash-accounting scheme!

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By FactChecker
15th Jun 2024 13:33

"Has anyone come across any businesses which do use a date other than invoice date?"
... depends on a particular business's invoicing & supply procedures.

The rules (of which it sounds like you're aware) are described in guidance at https://www.gov.uk/hmrc-internal-manuals/vat-time-of-supply/vattos5235

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By kim.shaw-and-co.com
15th Jun 2024 14:31

Certain automated invoicing systems include invoice and tax point date as separate data fields on commercial invoices.

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