Frequently Asked Questions on VAT

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What is a continuous supply? How is it affected by the transition to VAT?

A continuous supply is a supply of goods and/or services that is repeatedly provided or on a periodic basis. A continuous supply is only considered complete when the contract comes to an end, or one party involved in the contract decides to end it.

Suppose that a one-year maintenance service contract is signed in July 2018 and ends in July 2019. This means that a part of the services are done before VAT has been implemented, and the rest is done after. Therefore VAT needs to be charged for the services done between the 1st of January, 2019 to the last date of the contract in July 2019.

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