The Value Added Tax Regulations 1995

Continuous supplies of servicesU.K.

90.  —

(1) Subject to paragraph (2) below, where services [F1, except those to which regulation 93 applies,] are supplied for a period for a consideration the whole or part of which is determined or payable periodically or from time to time, they shall be treated as separately and successively supplied at the earlier of the following times—

(a)each time that a payment in respect of the supplies is received by the supplier, or

(b)each time that the supplier issues a VAT invoice relating to the supplies.

(2) Where separate and successive supplies of services as described in paragraph (1) above are made under an agreement which provides for successive payments, and the supplier at or about the beginning of any period not exceeding one year, issues a VAT invoice containing, in addition to the particulars specified in regulation 14, the following particulars—

(a)the dates on which payments under the agreement are to become due in the period,

(b)the amount payable (excluding VAT) on each such date, and

(c)the rate of VAT in force at the time of issue of the VAT invoice and the amount of VAT chargeable in accordance with that rate on each of such payments,

services shall be treated as separately and successively supplied each time that a payment in respect of them becomes due or is received by the supplier, whichever is the earlier.

(3) Where, on or before any of the dates that a payment is due as stated on an invoice issued as described in paragraph (2) above, there is a change in the VAT chargeable on supplies of the description to which the invoice relates, that invoice shall cease to be treated as a VAT invoice in respect of any such supplies for which payments are due after the change (and not received before the change).

[F2(4) This regulation shall not apply to any relevant services—

(a)where the period to which a payment falling within paragraph (1), (2) or (3) above relates, ends before 1st July 1997; or

(b)which are treated as supplied on 1st July 1997 by virtue of regulation 90A below.

(5) In this regulation and in regulations 90A and 90B below, “relevant services” means services within the description contained in paragraph 7A of Schedule 5 to the Act which are treated as supplied in the United Kingdom by virtue of [F3article 18] of the Value Added Tax (Place of Supply of Services) Order 1992.]