Indirect Tax Practice CBT question

Devlin Registered Posts: 24 Dedicated contributor 🦉
Hi I was wondering if anyone could help me get my head around one of the CBT questions for the VAT exam please?

Q. A sequence of events has taken place in a VAT-registered business as follows:

1. It issues a pro-forma invoice on 16 November
2. The customer collects the goods on 21 November
3. The customer pays the pro-forma invoice on 22 November
4. It issues a VAT invoice on the 24 November

What is the tax point of this supply?

Answer: 24 November

I was sure the tax point is the date a payment is received or the date the invoice is issued, whichever is the earlier, which would have made the answer the 22nd of November.

Any help would be appreciated, cheers.


  • Nps
    Nps Registered Posts: 782
    As the invoice was provided within 14 days of the supply, you take this date. If the payment had been made before the supply of goods then you would be right.

    If you look about half way down the page in the link below, there's quite a useful table.
  • Devlin
    Devlin Registered Posts: 24 Dedicated contributor 🦉
    That's great, cheers for the answer
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