UV9 - Invoicing: Tax Points Report

The UV9 - Invoicing: Tax Points Report is designed to identify vehicle deals where the 14-day rule for tax points may have been exceeded. This helps ensure that VAT is correctly accounted for in the appropriate period.

Key Tax Point Rule

• According to Section 6(5) of the VAT Act 1994, a tax point can be created by issuing a VAT invoice within 14 days after the basic tax point (usually the delivery date).
• If no invoice is issued within this period, the tax point reverts to the basic tax point.
• More details can be found in VAT Notice 700 Section 14.2.

Associated Risks

1. Incorrect VAT Accounting:

   • Vehicles invoiced in the current VAT period but delivered in the previous period may result in VAT being accounted for in the wrong period.

2. Compliance Issues:

   • Exceeding the 14-day rule without proper adjustments can lead to non-compliance with VAT regulations.

Considerations

1. Advance Payments:

   • A payment received in advance of the invoice date creates its own tax point.
   • In these cases, VAT may already have been accounted for as part of a manual adjustment at the end of the period.

2. Manual Adjustments:

   • Ensure any advance payments or adjustments are accurately recorded to align with VAT regulations.

Scenarios Where This Report is Useful

• Verifying compliance with the 14-day tax point rule.
• Identifying deals that may require adjustments to correct VAT reporting.
• Ensuring VAT is accounted for in the correct period, reducing the risk of penalties.