What is one of the three possible earliest dates for a tax point?

The date of dispatch is one of the earliest possible tax points for determining when VAT becomes chargeable. According to VAT rules, a tax point generally occurs when goods are delivered, which aligns with the date they are dispatched to the customer. This is an important concept in indirect tax, as the timing of the tax point impacts cash flow and the point at which VAT must be accounted for.

Establishing the tax point is crucial because it determines the period in which the transaction is recognized for VAT purposes. The date of dispatch indicates that the goods have left the supplier’s premises, making this a clear juncture for when VAT should be reported.

The other options, while relevant in different contexts, do not represent an earliest tax point scenario in the same direct manner as the date of dispatch. The date of payment can be relevant for non-commercial transactions but is usually not the earliest point for VAT. The date of invoice generation can also establish a tax point but generally is not earlier than the date of dispatch. The date of supplier agreement is related to the confirmation of a sale but does not indicate an actual transaction or sale completion. Hence, the date of dispatch stands out as a concrete and recognized tax point in VAT accounting.