Value Added Tax Consolidation Act 2010 section 74

Tax due on supplies

Section 74 sets out the rules for determining when VAT becomes due on supplies of goods and services, including special rules for utility bills, advance payments and forfeited deposits.

• VAT on a supply between taxable persons is due when the invoice is issued, or when it should have been issued if it is late; in all other cases VAT is due when the goods or services are actually supplied.
• For continuous supplies of gas, electricity or telecommunications to unregistered consumers, VAT is due when the statement of account issues, provided the supplier bills at least once every three months, and the applicable rate is the rate in force on that billing date.
• An advance payment or deposit triggers a deemed supply equal in value to the amount received at the time of receipt, but this rule does not apply to advance payments for intra-Community acquisitions or intra-Community supplies.
• Where a customer cancels a transaction and the supplier retains the deposit, the supplier may reduce VAT liability by the VAT already accounted for on the deposit, provided no supply took place, the cancellation is recorded, the deposit is not refunded, and no other benefit is given in its place.