Service Date
What is it
The actual date when the goods were delivered or the services were performed. It is distinct from the invoice issue date. It marks the 'tax point' in some jurisdictions.
When is it required
Whenever the supply date differs from the invoice date. It is a legal requirement for VAT invoices in many jurisdictions (e.g., UK VAT).
Tax point rules
The "Tax Point" or "Time of Supply" determines which VAT period the transaction falls into. The Service Date often triggers this.
Regional tax point rules
| Region | Rule | Effect on Invoice |
|---|---|---|
| UK (VAT) | 14-Day Rule | If invoice is issued within 14 days of service, invoice date = tax point. Otherwise, service date = tax point. |
| EU (General) | Chargeable Event | VAT becomes chargeable when the service is supplied. Invoicing must follow shortly after. |
| USA (Accrual) | Performance | Revenue is recognized when the service is performed, regardless of the invoice date. |
Common pitfalls
- Assuming the invoice date covers the service date. Tax authorities treat them differently.
- Being vague about the period covered (e.g., "April services"). Exact dates are safer for auditing.
- Failing to record the exact date of delivery confirmation. This can weaken a claim in non-delivery disputes.
Common mistakes when filling the field
- Listing a future date for past work. Using current date erroneously.
- Inconsistency between the service date and the line item descriptions.
- Omitting it entirely on VAT invoices. This renders the invoice non-compliant.
Why is it there
It determines the tax point for the transaction. It clarifies exactly when the liability to pay arose. It helps verify that the work was actually done.