What constitutes the actual tax point?

The actual tax point, often referred to as the 'time of supply', is typically established by either the payment date received or the date an invoice is issued, whichever occurs first. This means that when payment is made or when an invoice is issued, that date marks when the transaction is deemed taxable.

This is important for businesses to understand, as it affects when they must account for VAT or other indirect taxes. Recognizing the correct tax point ensures compliance with tax legislation and helps in accurate accounting practices. It essentially coordinates the timing of tax obligations with the recognition of revenue.

The other choices, while related to aspects of transactions or tax obligations, do not directly serve as the tax point. For instance, the dispatch date may indicate when goods are physically sent but does not determine taxation. The tax return date relates to when tax obligations must be reported and paid, not when they arise. The registration date typically refers to when a business officially registers for tax purposes and is not involved in determining the tax point for specific transactions.