VATTOS5245 - Actual tax points: VAT invoices: centrally agreed extensions to the 14 day rule
Local Authorities - The Institute of Municipal Treasurers and Accountants
Patent Agents - The Chartered Institute of Patent Agents
Scrap metal - Reclamation Industries Council
The Society of British Aerospace Companies Ltd (SBAC)
Introduction
There are a number of centrally agreed extensions and these are set out in the following paragraphs. Applications may still be received from individual tax payers who are already subject to one of these extensions 바카라 사이트“ for example seeking a longer period in which to issue invoices to that already agreed centrally. These may be approved provided you are satisfied that they are justified and will not lead to the problems associated with receipt of payments during the intervening period (see VATTOS5240).
The British Electrical and Allied Manufacturers Association/TheScientific Instruments Manufacturers Association/The Electronic Engineering Association
Members of these associations have been granted the following extension in respect of goods or services supplied to 바카라 사이트 Departments (including the Post Office):
If the consideration for a supply of goods or services made by member companies of the above Associations under a 바카라 사이트 contract is not ascertained or ascertainable at or before the time when the goods are removed or the services are performed, the supply may be treated as taking place at the time when the member issues a VAT invoice in respect of it provided that the invoice is issued not later than one year after the date of removal or performance.
바카라 사이트 Contracts
Accounting procedures by 바카라 사이트 Departments can delay the submission of contractor바카라 사이트™s invoices. The following general extension has therefore been granted to all taxable persons making supplies for an agreed or provisional price to 바카라 사이트 Departments (including the Post Office and quasi-바카라 사이트 Departments):
Where a taxable person supplies goods or services for an agreed price under a 바카라 사이트 contract and the supplier바카라 사이트™s invoicing is delayed due to 바카라 사이트 procedures, for example the use of Ministry of Defence Form 640, the supply may be treated as taking place at the time when the supplier issues a VAT invoice in respect of it, provided that the invoice is issued not later than 4 months after the date of removal of the goods or performance of the services.
Local Authorities - The Institute of Municipal Treasurers andAccountants
The majority of taxable supplies made by local authorities are cash sales accounted for under a retail scheme. In the case of invoiced supplies local authorities, for various reasons connected with their status, often have difficulty in issuing invoices within 14 days. The following general extension has therefore been agreed:
Where a local authority supplies taxable goods or services in the course of business activities the supply may be treated as taking place at the time when the local authority issues a VAT invoice in respect of it, provided that the invoice is issued not later than 2 months after the date of removal of the goods or performance of the services.
Patent Agents - The Chartered Institute of Patent Agents
Patent agents are frequently required to engage the services of other professional persons and suppliers in the course of making supplies to their clients. The patent agent is seldom in a position to issue an invoice to the client within 14 days after completion of the services and the following general extension has therefore been allowed:
If the consideration for a supply of services by a patent agent is not ascertained or ascertainable at or before the time when the services are performed, the supply may be treated as taking place at the time when the patent agent issues a VAT invoice in respect of it, provided that the VAT invoice is issued not later than 3 months after the date of performance of the service.
Scrap metal - Reclamation Industries Council
Scrap metal is often supplied by scrap metal dealers on 바카라 사이트˜material on valuation바카라 사이트™ terms. This means that the dealer has to await notification of the value from the customer and cannot normally issue an invoice within 14 days of removal of the material. The following extension has therefore been granted to members of the industry:
As the consideration for a supply of material on valuation in the scrap metal trade is not ascertained or ascertainable at or before the time when the goods are removed, the supply may be treated as taking place at the time when the supplier issues a VAT invoice in respect of it provided that the invoice is issued not later than 3 months after the date of removal.
The Society of British Aerospace Companies Ltd (SBAC)
Some of the supplies in the aerospace industry by members of SBAC are made under terms that allow for the price of those supplies to be subject to negotiation and agreement after the work has been completed. The following extension has therefore been granted to members of SBAC:
If the consideration for a supply of goods or services made by member companies of the Society of British Aerospace Companies Limited is not ascertained or ascertainable at or before the time when the goods are removed or the services are performed, the supply may be treated as taking place at the time when the member issues a VAT invoice in respect of it provided that the invoice is issued not later than 6 months after the date of removal or performance, or in the case of supplies made under a 바카라 사이트 contract not later than one year after the date of removal or performance.
Note: Similar extensions may be granted to other businesses in the aerospace industry who make supplies under similar terms but who are not members of SBAC.
Solicitors - The Law Society
The procedure for drawing up solicitor바카라 사이트™s bills is such that most solicitors are unable to issue an invoice within 14 days after the date of completion of their services. The following general extension has therefore been granted to all VAT registered solicitors:
If the consideration for a supply of services by a solicitor is not ascertained or ascertainable at or before the time when the services are performed, the supply may be treated as taking place at the time when the solicitor issues a VAT invoice in respect of it provided that the VAT invoice is issued not later than 3 months after the date of performance of the services.
Note: See VATTOS8500 for further guidance on tax points for supplies made by solicitors.