Commentary

V3.388 Acquisition—time and valuation of acquisition

Part V3 Supplies, acquisitions and imports

V3.388 Acquisition—time and valuation of acquisition

V3.388 Acquisition—time and valuation of acquisition

This paragraph examines the time at which an acquisition takes place for VAT purposes and the value of the acquisition by reference to which VAT is calculated. It should be read in conjunction with V3.361 which contains commentary on the meaning of acquisition, the identity of the acquirer and the charge to acquisition VAT.

Time of acquisition

Subject to provisions regarding accounting and payment (for which see 'Acquisitions—accounting and payment' at V3.396), tax on any acquisition of goods from another EU member state becomes due at the time of acquisition1.

The time when an acquisition is treated as taking place is specified in relation to2:

  1.  

    •     transactions involving specified goods where all or part of the consideration is determined or payable periodically, or from time to time, or at the end of a period

  2.  

    •     goods subject to a warehousing regime

  3.  

    •     goods subject to a fiscal warehousing regime

A general rule applies in other cases.

The general rule for the time of an acquisition

An acquisition is treated as taking place on the earlier of3:

  1.  

    •     the fifteenth day of the month following that in which the 'first relevant event' occurs, ie the first removal of the goods involved in the transaction which gave rise to the acquisition4 (this provision does not apply where the acquisition arises as a result of the simplification procedures for triangular transactions (see V3.388A) or installed goods (see V3.388AA)5)

  2.  

    •     the day when a prescribed invoice (ie an invoice of a description prescribed

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial