Value Added Tax Act 1994 section 28

Time of supply involving both a supply and an acquisition

Section 28 establishes when a supply is treated as taking place for VAT purposes where goods are removed from Northern Ireland and acquired in an EU member state by a person liable for VAT on that acquisition.

• When goods are supplied from Northern Ireland to an EU member state and the recipient is liable for VAT on the acquisition in that state, the normal time of supply rules under section 6 are disapplied.
• The supply is instead treated as taking place on the earlier of two dates: the 15th day of the month following the month in which the goods are removed from Northern Ireland, or the date a VAT invoice (or other prescribed invoice) is issued for the supply.
• If the invoice is issued before the 15th of the following month, the invoice date determines the tax point; if no invoice is issued by then, the 15th becomes the tax point.
• Section 6(14) of the Act is modified to include a reference to this paragraph, ensuring consistency with related provisions.