Which date decides when a sale goes on my VAT return?

For a straightforward supply, the basic tax point is normally when goods are removed or made available, or when a service is completed. An earlier VAT invoice or payment can create a tax point for the amount invoiced or paid. A VAT invoice issued within fourteen days after the basic tax point will normally move the tax point to its issue date, subject to the relevant exceptions. An invoice raised later does not automatically move VAT into that later period. Continuous supplies and some specialist transactions have separate rules. Keep the supply, invoice and payment dates visible so the period is based on the transaction rather than when someone enters it into Xero.

VAT Cash Accounting generally changes when you account for output VAT to when payment is received, but it does not remove the need to understand the supply or its tax point. Deposits, staged payments and transactions outside the scheme can need separate checks. At a VAT period end, review work completed but not yet invoiced, invoices raised in advance and payments received before delivery. Do not assume the bank date controls every transaction or move an invoice simply to postpone VAT. CASS can help check the dates and scheme rules, identify missing entries and correct the treatment. The VAT timing can also differ from when revenue is recognised in your accounts.