Walton Ltd agreed to construct a rubber processing plant for another, unrelated company, and began work on its construction during September of 2018

Accounting Jan 21, 2021

Walton Ltd agreed to construct a rubber processing plant for another, unrelated company, and began work on its construction during September of 2018. Construction of the plant was completed on 16 April 2019. Payment for the work done was received on 12 April 2019 and Walton Ltd issued a VAT invoice on 3 May 2019. The customer started using the plant on 18 March 2019 even though construction was not actually complete at that date. What is the VAT point for the supply of the plant? O 2 May 2019 O 16 April 2019 18 March 2017 12 April 2012

Expert Solution

Answer- The Correct answer is A) 3 May 2019 (There is Error in Option)

VAT is levied at the time of Transfer of Property in Goods. Hence in our case the Transfer in Property happens at the time of Issue of Invoice. ie 3rd may 2019.

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