Tax points: when is the VAT due?
The tax point is the date a sale counts for VAT. Learn the basic rule, the 14 day rule and what a deposit does to it.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
Task 1The basic tax point3 questions
Every sale has a tax point, also called the time of supply. It decides which VAT period the sale belongs to, and so which VAT return its VAT goes on.
- Basic tax point for goods
- the date the goods are sent to the customer, or collected
- Basic tax point for services
- the date the work is finished
These are the normal rules. Some small businesses use a scheme that counts VAT when money is paid instead.
Task 2When the tax point moves4 questions
Task 3Deposits3 questions