Each tax invoice issued for a taxable supply must include the date of supply (tax point date for VAT purposes). The date of supply determines when VAT becomes due, according to the Unified VAT Agreement:
“Tax becomes due on the date of supply of goods or services, or the date of issuing the tax invoice, or the date of receipt of consideration, whichever is earlier.”
The date of supply determines the tax period for which the supply will be declared. Since each supply has a different tax due date, VAT is paid by the supplier to the authority when filing the return (when VAT for the entire period is due).
In ordinary cases, the actual date of supply for goods or services is the date of delivery of the goods or completion of the services. However, there are some special rules for determining the date of supply within the Unified VAT Agreement and its Executive Regulation.
Example: Dr. Nora provides medical consultation services. Since medical consultation is a one-time service, the date of supply is the date of the consultation.