Regulation 5

For regulation 23 of the principal Regulations there shall be substituted the following—

“23

(1)

Subject to paragraph (2) below, where services are supplied for a period for a consideration the whole or part of which is determined or payable periodically or from time to time, they shall be treated as separately and successively supplied at the earlier of the following times—

(a)

whenever a payment in respect of the supplies is received; or

(b)

whenever the supplier issues a tax invoice relating to the supplies.

(2)

Where such separate and successive supplies of services as are described in paragraph (1) above are made under an agreement which provides for successive payments, and the supplier at or about the beginning of any period not exceeding one year, issues a tax invoice containing, in addition to the particulars specified in regulation 13, the following particulars—

(a)

the dates on which payments under the agreement are to become due in the period

(b)

the amount payable (excluding tax) on each such date; and

(c)

the rate of tax in force at the time of issue of the tax invoice and the amount of tax chargeable in accordance with that rate on each of such payments,

services shall be treated as separately and successively supplied whenever a payment in respect of them becomes due or is received, whichever is the earlier.

(3)

Where, on or before any of the dates that a payment is due as stated on an invoice issued as described in paragraph (2) above, there is a change in the tax chargeable on supplies of the description to which the invoice relates, that invoice shall cease to be treated as a tax invoice in respect of any such supplies for which payments are due after the change.”.