💡 Basic Rule
The tax point is the earliest of: (1) the date of supply (goods delivered or services performed), (2) the date of invoice, or (3) the date of payment.
Supply Types
📦 Goods
Date goods are made available to customer (delivery or collection). For consignment stock — when consignee takes goods from stock. For goods on approval — when approval given or time limit expires.
🔧 Services
Date services are completed. For milestone-based projects — each milestone is a separate supply. For retainer services — see continuous supplies below.
🔄 Continuous Supplies
Where supply is provided on a continuous basis (rent, subscriptions, utilities). Tax point is the earlier of invoice date or payment due date for each period. Invoice must be issued within 15 days of tax point.
💳 Advance Payments
Receipt of advance payment creates an immediate tax point for the amount received. VAT must be accounted for in the return period covering the payment date — even if goods/services have not yet been delivered.
🏠 Property
Sale of real property — date of registration transfer or payment (whichever is earlier). Rental — each rental payment date is a separate tax point.
⚠️ Penalty: Declaring VAT in the wrong return period can attract a 1% daily penalty on the undeclared amount (capped at 100%). Always determine the correct tax point before preparing your return.