‘When Vat is not chargeable’


25-November-2011

The statement which appeared as the first bullet point under the heading ‘When Vat is not chargeable’ should be deleted:

 “If the services have been completed prior to July 2012, but both the invoice and the payment are made after July 1, 2012, then Vat is not chargeable. The time of supply is considered to be the date the service was completed.”

This section, under the heading ‘When Vat is not chargeable’, should read instead as follows
       “If the services have been completed and an invoice has been issued prior to July 1, 2012, but payment is made thereafter, then Vat is not chargeable on the supply. The time of supply is considered to have taken place prior to Vat implementation.

 If the services have been completed and payment has been made prior to July 1, 2012, but an invoice is issued thereafter, then Vat is not chargeable on the supply. The time of supply is considered to have taken place prior to Vat implementation.

 If the services are completed after July 1, 2012, but an invoice is issued and/or payment is made prior to that, then Vat is not chargeable on the supply. The time of supply is considered to have taken place prior to Vat implementation.

  If a partial payment is made prior to July 1, 2012, but the invoice is issued and the remaining payment is made thereafter, then VAT is chargeable only on the remaining payment made after Vat implementation. The invoice will therefore reflect a partial payment with no Vat and the remaining payment with Vat.”

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