VAT tax point date.?

Question

Company A supplys a monthly service - lets say booking.

Per the contr act "Billing: Monthly in advance". It does not state payment terms - but 30 days is agreed.

The invoice for the July service is dated 1 June by Company A so they can ask for payment on 30 June. In prior months it has usually been dated early in the month - but no set day - to get payment before the service is provide.

To be a VAT invoice - must it have a tax point date - and what would it be - 30 June? Without the VAT tax point date is it strictly speaking not a VAT invoice at all? (And therefore payment can not be demanded as we have not been billed).

Company A is doing this to us - to get payment in advance of the start of providing the service being 30 June - and imho not providing the service - but in my opinion payment is due 30 July per the contract and the invoice should be dated 30 June.

Answer 1

If not specifically stated otherwise the "VAT tax point" will usually be the date the supplier puts on the invoice.

Providing the invoice contains a date and all the other necessary elements for a VAT invoice it will usually be treated as such by the Revenue.

Although there are special exceptions to this general approach they don't seem to apply in your case as you describe it.

Whether or not you agree with how the suppler has operated within the terms of the contract is between you and him. Nothing to do with the Revenue/VAT office.

From the Revenue's view on the rules .....

http://www.hmrc.gov.uk/vat/records-valid...

Scroll down to the section entitled "Information that must be shown on a VAT invoice".

Hope this helps.