Q- My client is a planning consultant. He had a contract which began prior to his effective date of VAT registration and continued after. The agreement was for stage payments to be made. I understand that at least one invoice was issued prior to registration, but payment was not received until after he was registered. Does he have to account for VAT on that payment?
A- Where there is a supply of services in the course of construction where the contract is for stage payments, then Regulation 93 (VAT regulations 1995, SI 1995/2518) applies to determine the time of supply. VATTOS9110 https://www.gov.uk/hmrc-internal-manuals/vat-time-of-supply/vattos9110 confirms that this regulation governing the time of supply applies to professional services such as architects, surveyors, consultants as well as the more obvious construction services. Read More