V3.140C Tax point—specified services

Part V3 Supplies, acquisitions and imports

V3.140C Tax point—specified services

V3.140C Tax point—specified services

Supply subject to a retention (other than supplies in the construction industry)

A contract for the supply of services may provide for the retention of part of the consideration by a person pending full and satisfactory performance of all or part of the contract by the supplier.

For the tax point in relation to such supplies in the construction industry, see V3.140D.

Services are treated as separately and successively supplied at the following times1:


    (a)     the time determined in accordance with the rules described in V3.131–V3.134 or V3.136 as the case may require, and


    (b)     the earlier of the time when a payment is received by the supplier and the time when the supplier issues a VAT invoice, in respect of any part of the consideration retained pursuant to the terms of the contract

A tax point under (b) is not created if the invoice in question is a self-billed invoice2.

Continuous supply of services

All or part of the consideration for services supplied for a period may be determined or payable periodically or from time to time (but see below for special rules relating to the construction industry). If so, the services are treated as separately and successively

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