Determining exactly when and where a transaction occurs prevents tax evasion and resolves cross-border jurisdictional disputes.
Time of Supply (Tax Point)
The tax point dictates the specific tax period (calendar month) in which VAT must be declared and paid. The time of supply is legally triggered by the earliest of the following occurrences:
  1. The date the goods are delivered, removed, or the service is completed.
  2. The date the tax invoice for the transaction is issued.
  3. The date payment for the supply is received in whole or in part.

Place of Supply
The place of supply determines which country has the legal right to tax the transaction.
  • Goods: Taxed where the goods are physically located when transportation begins, or where they are made available to the buyer.
  • Services: Generally taxed where the supplier has their place of business. However, services tied to real estate are taxed where the property sits, and cultural or entertainment events are taxed where they physically occur.

 
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