VATTOS6100 | Accommodation tax points: Introduction

A tax point under the special rules allowed for by section 6(10) of the VAT Act 1994 (see VATTOS2245) is often referred to as an accommodation tax point. It can provide a degree of flexibility in circumstances where following the normal rules would cause excessive difficulty. Section 6(10)(a) allows the tax point to be advanced to a time earlier than would normally be the case. This is commonly adopted to overcome the time of supply difficulties that can be associated with exempt supplies of credit. Section 6(10)(b), on the other hand, allows the tax point to be delayed and was originally intended to permit monthly invoicing. Experience has shown it to be suitable for use in other circumstances such as in the case of MoD contractors (see VATTOS6500).