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Supplies subject to a retention (other than construction industry supplies)

A contract for the supply of services may provide for the retention of part of the consideration by a person pending full and satisfactory performance of all or part of the contract by the supplier.

For the tax point in relation to such supplies in the construction industry, see V3.140D.

Services are treated as separately and successively supplied at the following times¹:

1. Ìý

   (a)ÌýÌýÌýÌý the time determined under the rules described in V3.131–V3.134 or V3.136 as the relevant situation requires, and

2. Ìý

   (b)ÌýÌýÌýÌý the earlier of the time when a payment is received by the supplier and the time when the supplier issues a VAT invoice, in connection with any part of the consideration retained under the terms of the contract

A tax point under (b) is not created if the relevant invoice is a self-billed invoice².

Continuous supplies of services

All or part of the consideration for services supplied for a period may be determined