The following Tax guidance note Produced in partnership with Martin Scammell provides comprehensive and up to date legal information covering:
This Practice Note is about the VAT time of supply rules for property transactions. For an explanation of the general VAT time of supply rules, see Practice Note: VAT time of supply rules—when is a supply made?
VAT is payable to HMRC on the VAT return for the period when the time of supply, or ‘tax point’, arises.
If this is before the customer has had to pay the VAT to the supplier, the supplier will be out of pocket and will need to finance the VAT amount. Solicitors need to be aware of when VAT is going to be due to HMRC, in order to ensure that this does not happen, or at least that the client knows it is going to happen. Sometimes it can be a good idea for the parties to negotiate when the VAT amount is paid, in order to manage cashflow for both of them.
The time of supply rules can also be relevant in other ways, for example when the VAT rules change, or in determining when a buyer needs to comply with the conditions for a transfer of a going concern (see Practice Note: Transfers of a going concern involving land and buildings).
The basic tax point arises when goods are delivered or made available, or services
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.