The VAT liability usually arises at the time of supply, i.e. when all the elements of the transaction materialise. Special dates of supply apply in the following cases:
- in the case of advance payment, the date of supply is when the advance payment is received (the invoice on the advance payment must be issued by the supplier after receipt of the advance payment)
- in the case of regular supplies of goods or services (supplies settled periodically), the date of supply is the due date of payment, or from 2016 the last day of the settlement period (e.g. rental fee or supply of goods from a consignment warehouse settled monthly)
- in the case of transactions with a reverse charge mechanism, the date of supply is whichever is earliest of the day when the invoice is received, the day when the price is paid or the 15th day of the month after the month of supply.