Value Added Tax Act 1994, section 6

Time of supply

Part I The charge to tax

(1)The provisions of this section shall apply, subject to [F27sections 18, 18B [F28 , 18C and 57AF28,F27]] for determining the time when a supply of goods or services is to be treated as taking place for the purposes of the charge to VAT.

(2)Subject to subsections (4) to (14) below, a supply of goods shall be treated as taking place—

(a)if the goods are to be removed, at the time of the removal;

(b)if the goods are not to be removed, at the time when they are made available to the person to whom they are supplied;

(c)if the goods (being sent or taken on approval or sale or return or similar terms) are removed before it is known whether a supply will take place, at the time when it becomes certain that the supply has taken place or, if sooner, 12 months after the removal.

(3)Subject to subsections (4) to (14) below, a supply of services shall be treated as taking place at the time when the services are performed.

(4)If, before the time applicable under subsection (2) or (3) above, the person making the supply issues a VAT invoice in respect of it or if, before the time applicable under subsection (2)(a) or (b) or (3) above, he receives a payment in respect of it, the supply shall, to the extent covered by the invoice or payment, be treated as taking place at the time the invoice is issued or the payment is received.

(5)If, within 14 days after the time applicable under subsection (2) or (3) above, the person making the supply issues a VAT invoice in respect of it, then, unless he has notified the Commissioners in writing that he elects not to avail himself of this subsection, the supply shall (to the extent that it is not treated as taking place at the time mentioned in subsection (4) above) be treated as taking place at the time the invoice is issued.

(6)The Commissioners may, at the request of a taxable person, direct that subsection (5) above shall apply in relation to supplies made by him (or such supplies made by him as may be specified in the direction) as if for the period of 14 days there were substituted such longer period as may be specified in the direction.

F29(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F29(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F30(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10)The Commissioners may, at the request of a taxable person, by direction alter the time at which supplies made by him (or such supplies made by him as may be specified in the direction) are to be treated as taking place, either—

(a)by directing those supplies to be treated as taking place—

(i)at times or on dates determined by or by reference to the occurrence of some event described in the direction; or

(ii)at times or on dates determined by or by reference to the time when some event so described would in the ordinary course of events occur,

the resulting times or dates being in every case earlier than would otherwise apply; or

(b)by directing that, notwithstanding subsections (5) and (6) above, those supplies shall (to the extent that they are not treated as taking place at the time mentioned in subsection (4) above) be treated as taking place—

(i)at the beginning of the relevant working period (as defined in his case in and for the purposes of the direction); or

(ii)at the end of the relevant working period (as so defined).

(11)Where goods are treated as supplied by an order under section 5(5), the supply is treated as taking place when they are appropriated to the use mentioned in that section.

(12)Where there is a supply of goods by virtue only of paragraph 5(1) of Schedule 4, the supply is treated as taking place when the goods are transferred or disposed of as mentioned in that paragraph.

(13)Where there is a supply of services by virtue only of paragraph 5(4) of Schedule 4, the supply is treated as taking place when the goods are appropriated to the use mentioned in that paragraph.

(14)The Commissioners may by regulations make provision with respect to the time at which (notwithstanding [F31subsections (2) to (6)F31] and (11) to (13) above or section 55(4)) a supply is to be treated as taking place in cases where—

(a)it is a supply of goods or services for a consideration the whole or part of which is determined or payable periodically, or from time to time, or at the end of any period, or

(b)it is a supply of goods for a consideration the whole or part of which is determined at the time when the goods are appropriated for any purpose, or

(c)there is a supply to which section 55 applies, or

(d)there is a supply of services by virtue of paragraph 5(4) of Schedule 4 or an order under section 5(4);

and for any such case as is mentioned in this subsection the regulations may provide for goods or services to be treated as separately and successively supplied at prescribed times or intervals.

[F32 (14A)F33... this section and any regulations under this section or section 8(4) shall have effect subject to section 97A.F32]

(15) In this Act “VAT invoice” means such an invoice as is required under [F34 paragraph 2A F34] of Schedule 11, or would be so required if the person to whom the supply is made were a person to whom such an invoice should be issued.

Definitions used in section 6 9

VAT

“VAT” means value added tax charged in accordance with this Act;

Defined in s.96(1) · see it in the full Act
supplied

(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act ).

Defined in Sch.7A para.A1 · see it in the full Act

(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act ).

Defined in Sch.8 para.3 · see it in the full Act
VAT invoice

“VAT invoice” has the meaning given by section 6(15);

Defined in s.96(1) · see it in the full Act
invoice

“invoice” includes any document similar to an invoice;

Defined in s.96(1) · see it in the full Act
the Commissioners

“the Commissioners” means the Commissioners of Customs and Excise;

Defined in s.96(1) · see it in the full Act
taxable person

“taxable person” means a person who is a taxable person under section 3;

Defined in s.96(1) · see it in the full Act
relevant

(b) when specifying a body under paragraph (a), specify any museum or gallery that, for the purposes of this section, is a “relevant” museum or gallery in relation to the body;

Defined in s.33A(9) · see it in the full Act
regulations

“regulations” means regulations made by the Commissioners under this Act;

Defined in s.96(1) · see it in the full Act
prescribed

“prescribed” means prescribed by regulations:

Defined in s.96(1) · see it in the full Act

Cases considering section 6 17

The Prudential Assurance Company Ltd v Commissioners for His Majesty’s Revenue and Customs

[2025] UKSC 34 · 11 September 2025Interprets

Confirms that section 6 determines when supplies are treated as taking place for the charge to VAT, including when applying the VAT-group disregard. (see paras [18]; [75]) Authorises regulations treating supplies for periodically or intermittently determined consideration as separately and successively supplied. Regulation 90 validly exercises that power in relation to contingent success fees. (see paras [20]–[21]; [94]; [153]) The provision supplies the general time-of-supply rules for goods and formed the statutory comparison with pre-payment cases. (see para [42]) The general rule treats services as supplied when performed, subject to the later provisions and regulations authorised by section 6. (see paras [19]–[20]) Treats a supply, to the extent of an advance invoice or payment, as occurring when that invoice is issued or payment received. The provision was distinguished from the separate-and-successive-supply rule for services. (see paras [35]; [42]; [59])

Royal and Sun Alliance Insurance Group plc (Respondents) v. Her Majesty's Commissioners of Customs and Excise (Appellants).

[2003] UKHL 29 · 22 May 2003Interprets

The section governs when supplies are treated as made. The majority held that its time-of-supply scheme could also require periodic lease supplies to be treated as separate and successive supplies. (See Lord Hoffmann; Lord Walker, The Statutory Provisions and Discussion.) The subsection authorises regulations treating goods or services supplied for periodic consideration as separately and successively supplied. The majority held that its scope was broad enough to make each periodic lease supply distinct. (See Lord Hoffmann; Lord Walker, Discussion.)

The Prudential Assurance Company Limited v The Commissioners for HMRC

[2024] EWCA Civ 300 · 26 March 2024Interprets

The court construed the section as providing the statutory framework for determining when supplies are treated as made, including consequences beyond mere bookkeeping. (see paras [9], [59]-[61]) The court relied on the wording that section 6 determines when a supply is treated as taking place for the purposes of the VAT charge. (see paras [9], [60]) The court held that the statutory power supports regulations treating continuous supplies as separately and successively supplied at prescribed times, with consequences beyond timing alone. (see paras [9], [38], [50], [60]) The court identified performance of the services as the starting point, subject to the statutory qualifications governing continuous supplies and invoicing. (see para [9]) The court described the rule treating a supply, to the extent covered, as made when an invoice is issued or payment received before performance. (see paras [9], [25])

What each judgment says about section 6 is in the case-law panel in the full Act.

Amendments and notes

8 notes from legislation.gov.uk

Amendments

  1. F27Words in s. 6(1) substituted (1.6.1996 with application to any acquisition of goods from another member State and any supply taking place on or after that day) by 1996 c. 8, ss. 25, 26, Sch. 3 para. 1; S.I. 1996/1249, art. 2
  2. F28Words in s. 6(1) substituted (with effect in accordance with Sch. 15 para. 8 of the amending Act) by Finance Act 2022 (c. 3), Sch. 15 para. 2
  3. F29S. 6(7)(8) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 6(2) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.
  4. F30S. 6(9) repealed (1.12.2003) by Finance Act 2002 (c. 23), s. 24(5), Sch. 40 Pt. 2; S.I. 2003/3043, art. 2
  5. F31Words in s. 6(14) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 6(3) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.
  6. F32S. 6(14A) inserted (retrospective to 17.3.1998) by 1998 c. 36, s. 22(2)(3)
  7. F33Words in s. 6(14A) omitted (with effect in accordance with Sch. 36 para. 14(3) of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 36 para. 2 (with Sch. 36 para. 19)
  8. F34Words in s. 6(15) substituted (1.12.2003) by Finance Act 2002 (c. 23), s. 24(4)(a)(5); S.I. 2003/3043, art. 2