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CMA Intermediate · Direct and Indirect Taxation · Time and Value of Supply

A supplier issues a voucher on 1 April. At that time the goods or services for which it can be redeemed are not identifiable, since it can be used for any item in the supplier's range. The customer redeems it on 15 June. Under Section 12 for goods, the time of supply is:

The time of supply is 15 June, the date of redemption. For vouchers, the issue date counts only if the supply is identifiable at that point; otherwise the redemption date is the time of supply, as in this case.

  1. A1 April, the date of issue of the voucher
  2. B15 June, the date of redemption of the voucherCorrect
  3. CThe date on which the supplier files its periodical return
  4. DThe date following thirty days from the issue of the voucher

Explanation

Under Section 12(4), the time of supply is the date of issue of voucher only if the supply is identifiable at that point; in all other cases it is the date of redemption. Here the supply is not identifiable on 1 April, so 15 June applies.

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