VAT tax point (UK)
A VAT tax point determines the VAT period in which the relevant supply is accounted for. The basic tax point is generally when goods are sent or taken away, or made available where they are not sent or taken away, or when a service is performed. An earlier invoice or payment can create an actual tax point for the amount invoiced or paid; an invoice within the applicable 14-day rule can also change the date. Special rules, partial payments, accounting schemes and exceptions require the facts and relevant assessment period to be checked.
Worked example
A business completes a service and issues a VAT invoice seven days later. Assuming the normal 14-day rule applies and no earlier payment or special rule intervenes, the invoice date is the actual tax point.
Common mistake
Automatically using the payment date for every transaction or applying the 14-day invoice rule without checking earlier payment and exceptions.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |