V3.503 Accounting and payment

General rule

A taxable person is required to account for and pay output tax on his supplies and acquisitions by reference to prescribed accounting periods1. His supplies for this purpose include services and goods subject to the reverse charge2 (which are actually supplied by a person who belongs in a country other than the UK), self-supplies and other deemed supplies3.

A taxable person accounts for and pays output tax by—

  1.  

    (1)     making an entry in the tax payable portion of his VAT Account4 showing a total of output tax for each prescribed accounting period5;

  2.  

    (2)     accounting for all of his output tax for a prescribed accounting period in the return required to be furnished for that period6; and

  3.  

    (3)     paying such amount (if any) as is payable in respect of the period to which the return relates7.

Subject to provisions about accounting and payment (for which see V5.101–V5.103), tax on any supply of goods or services becomes due at the time of supply8 and tax on any acquisition of goods from another EU member state becomes due at the time of acquisition9. Output tax for a prescribed accounting period is therefore the amount which becomes due in that period.

HMRC have a discretion to allow or direct that a person account for or pay VAT otherwise than in accordance with the rules set out above10.

Special rules

(i) Cash accounting scheme

Regulations11 made under

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