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How is VAT recorded on a purchase invoice in the books? How long must VAT records be retained and in what form? What is the difference between zero-rated and exempt supplies? What information must a valid VAT invoice contain? How do you complete and reconcile a VAT return? How is the VAT liability settled and recorded when paid? What is the VAT cash accounting scheme? What is the VAT flat rate scheme? What is the annual accounting scheme for VAT? How do you correct VAT errors from previous returns?
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Bookkeeping › VAT Records

What is the tax point (time of supply) and why does it matter?

Intermediate

Answer

The tax point is the date a supply is treated as taking place for VAT, determining which VAT period and rate apply. The basic tax point is when goods are removed or services performed, but an earlier invoice or payment can create an actual tax point. It matters for placing VAT in the correct return period.
Invoice issued 28 Mar for goods delivered 2 Apr -> tax point 28 Mar (invoice date).
Real-world example An invoice raised before delivery sets an earlier tax point, pulling the VAT into the prior period.

Common follow-ups: What is the basic vs actual tax point? | How can an invoice change the tax point?

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All 25 VAT Records questions