Commentary

V7.434 Supply—planning points to consider

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.434 Supply—planning points to consider

Part V7 Tax planning | Commentary

V7.434 Supply—planning points to consider

The following planning points should be given consideration.

  1.  

    •     Remember that a tax point is created for VAT purposes when goods supplied on a sale or return basis have been held by a customer for 12 months.

  2.  

    •     The basic tax point for goods (date of supply) is overridden if an invoice is raised or payment is received within 14 days of the supply – this can possibly create a cash flow benefit for a business by moving the output tax liability to the next VAT period.

  3.  

    •     When dealing with compensation payments to customers,

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