Tax Point

    The date when VAT becomes chargeable on a transaction.

    Definition

    The tax point (or time of supply) determines when VAT must be accounted for. It is typically the earlier of the date of invoice or the date of payment, though rules vary by country. For goods, it may be the date of delivery. Getting the tax point right is critical for correct VAT return filing.

    Related Terms

    VAT Return
    A periodic declaration of VAT collected and paid.
    VAT (Value Added Tax)
    A consumption tax levied at each stage of the supply chain.
    Invoice Requirements
    The mandatory information that must appear on a VAT invoice.

    Check your compliance

    Get a personalized Tax Health Score with actionable recommendations.

    Get Tax Health Score