Tax point query

[Lee Young]

If a trader buys a goods on a credit card which are relevant for his vatable supplies is the tax point the date of the purchase or the date the credit card is paid? I suspect the former but would be grateful for someone to confirm this.

Thanks

[maths]

Would really like to help given your efforts to help others but quite frankly know as much about VAT as astro-physics.

No doubt someone will help as you're famous!

[robbob]

Hello Lee

As the goods have been paid for a tax point will have been created when the credit card is used to pay the supplier.

[Lee Young]

Thank you.

[dally]

It is for the vendor to determine the tax point (rather than your client, as purchaser). The basic rule is the tax point is the earlier of time off supply or receipt of payment of goods. So, if the goods were bought in the normal way - eg in a shop then the tax point would have been date of sale of the items (ie what was said by the poster above!).

[robbob]

Just to clarify the situation the way i read the initial question was that Lee was wanting to know what date an input vat claim could be made for a business using cash accounting (I may be wrong here perhaps Lee can expand a little)

If this is the question then although a tax point may sometimes be created at an earlier time as dally has mentioned input vat cannot be recovered until the supplier has been paid (whatever method is used to pay the supplier does not really matter)

Perhaps i should have been a little bit more clear in my original reply.