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Where Taxpayers and Advisers Meet

Tax Point for Exports, Proof of Export

Dave-A
Posts:134
Joined:Wed Aug 06, 2008 4:10 pm
Tax Point for Exports, Proof of Export

Postby Dave-A » Sat Oct 01, 2022 11:52 am

If my firm invoiced a customer for goods three months ago, and then the customer decided to delay shipment for three months, having only paid a third of the invoice value, am I right to conclude that I don't have to raise a VAT surcharge invoice in month 3, because we haven't technically made a supply at this point?

The rules in Notice 703 2.11 suggest that either full payment, or shipment, determine the tax point. Raising the invoice for 100% of the goods doesn't seem to count!

Thanks,

Dave-a

les35
Posts:640
Joined:Wed Aug 06, 2008 3:09 pm

Re: Tax Point for Exports, Proof of Export

Postby les35 » Mon Oct 03, 2022 3:33 pm

I am inclined to agree. Where full payment has not been made, no tax point is triggered, so the three month time limit does not start. This protects you from having to treat the supply as standard rated instead of zero rated.


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