The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note discusses issues around the time of supply (tax points) and invoicing in the context of buildings, construction and land.
For the time of supply rules generally, see the Time of supply (tax points) guidance note. For invoicing more broadly, see the Tax invoice requirements guidance note.
The date on which VAT needs to be declared to HMRC will depend on the nature of the contract agreed with the client. However, there are a number of specific tax point rules and challenges which affect buildings, construction and land. Several of these are set out below.
Single payment contracts follow the normal tax point rules as set out in the Time of supply (tax points) guidance note.
There are special rules for contracts with periodic payments when they are for the following services performed on buildings (and civil engineering works):
SI 1995/2518, reg 93
If the contract for these kinds of services contains clauses which enable the supplier to collect interim, periodic or stage payments, the tax point for the supply will be the earlier of the customer making payment or the supplier issuing a VAT invoice.
This rule also covers the work of architects, surveyors and consultants, as well as supplies of goods with the services.
There is no ‘basic tax
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