Value Added Tax

What is the tax point?

The tax point is the date used to identify the VAT period which should be used to include the output or input VAT.

Basic tax point

This is:

The date the goods are delivered

or
The date the services are performed
Actual tax point:

The actual tax point is used more frequently than the basic tax point.

The actual tax point is the earlier of:

The date the cash is received or paid before the goods

and
The basic tax point

The basic tax point date is replaced if an invoice is issued within 14 days of the basic tax point.
Here is a simple way to work your tax point out:

Step 1:
The basic tax point is the date that the goods are delivered or services are performed.
Use the basic tax point if the answers to the below two steps are NO.

Step 2:
Is cash paid or received before the basic tax point date? (Actual tax point)

Yes – Use this date.
No – Go to step 3

Step 3:
Is an invoice issued within 14 days after the goods are delivered or services are performed (basic tax point date)? (Actual tax point)

Yes – Use this date.
No – Use the basic tax point date from step 1