Glossary

Tax point

The tax point is the date a sale counts for VAT — it decides which return the VAT goes in, and it is not always the invoice or payment date.

2 min read

VAT date of supplySets the VAT period

Not always invoice dateTiming matters

Definition

The tax point (time of supply) is the date a transaction is treated as occurring for VAT. It is usually the invoice date, but can be the payment or delivery date under specific rules, and it fixes the VAT return period.

In plain terms

Getting the tax point right decides which quarter’s VAT a sale falls into — which matters for cash flow and for filing the right figures.

Why it matters for your company

Tax-point timing affects when output VAT is due, so it feeds your VAT cash planning. Set the money aside as it arises with the VAT set-aside calculator. See cash accounting scheme.