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Tax point

23 September 2014
Issue: 4470 / Categories: Forum & Feedback , VAT

VAT tax point if invoice date is more than 14 days after job completion?

I have a client who is a subcontractor for main contractors in the construction industry. His accounting procedure has always been to raise an application for payment at the end of a job.

He will then raise a sales invoice when he receives payment from the contractor after 30 or 60 days accounting for output tax on his VAT return according to the invoice date.

My query is that if the invoice date is more than 14 days after the date when he completes the job does the tax point for VAT purposes revert back to the date of completion?

In some cases this could result in an output tax liability on a VAT return for an earlier period. Alternatively is this not an issue in the construction industry where applications of the kind described are very common?

Query 18 458 – Bob


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