VAT 2010: Time of supply changes

From 1 January 2010 the time of supply (or the tax point of an invoice) for reverse charge services will be based on when a service is performed. For supplies of single services the tax point will occur when the service is completed or when it is paid for, whichever is the earlier.

In the case of continuous supplies, the tax point will be the end of each periodic billing or payment period. For example if car or equipment leasing charges are billed monthly or the customer is required to pay a monthly amount, the tax point will be the end of the month to which the bill or payment relates.

On the other hand, if a payment is made before the end of the period to which it relates or before the end of the billing period then the payment date, rather than the end of the period, will be treated as the tax point.