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G2. Payment giving time of supply
PAYMENT IN ADVANCE​
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- VAT not chargeable where goods or services to be supplied not precisely identified
"[28] Thus, in order for VAT to be chargeable before the supply of goods or services is made, all the relevant information concerning the chargeable event, namely the future supply of goods or services, must already be known and therefore, in particular, the goods or services must be precisely identified at the time the payment on account is made (BUPA Hospitals and Goldsborough Developments, paragraph 48, and Case C‑520/10 Lebara [2012] ECR, paragraph 26). Therefore, payments on account of supplies of goods or services that have not yet been clearly identified cannot be subject to VAT (BUPA Hospitals and Goldsborough Developments, paragraph 50, and Case C‑270/09 MacDonald Resorts [2010] ECR I‑13179, paragraph 31)." ​(Orfey Balgaria EOOD C-549/11)
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Supply must be precisely identified​
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Payment in advance giving time of supply ​
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- Full payment in advance included
"[37] The fact that the establishment of the building right at issue in the main proceedings represents the entire consideration, and not only part thereof, for the construction services which Orfey undertook to perform does not cast doubt on such an interpretation. Firstly, Article 65 provides that VAT becomes chargeable ‘on the amount received’. The wording of that provision does not, therefore, preclude the amount received from equalling the entire consideration for the supply of services on which the VAT becomes chargeable." ​(Orfey Balgaria EOOD C-549/11)
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- Payment in kind: same rule
"[36] It follows that the principle of equal treatment would be disregarded if the application of Article 65 of the VAT Directive contributed to which form was taken by the consideration received by the taxable person. Accordingly, that principle calls for an interpretation of Article 65 to the effect that it applies also when the payment on account is made in kind, once the conditions referred to in paragraph 28 above are met. It is necessary, however, that that value of that payment on account may be expressed in monetary terms. According to settled case‑law, the consideration for a supply of services may consist of a supply of goods, and so constitute the taxable amount within the meaning of Article 73 of the VAT Directive, if there is a direct link between the supply of services and the supply of goods and if the value of those goods can be expressed in monetary terms (see, to that effect, Case C‑380/99 Bertelsmann [2001] ECR I‑5163, paragraph 17 and the case‑law cited)." ​(Orfey Balgaria EOOD C-549/11)​
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- Risk of extinguishment does not prevent rule applying
"[38] Within that framework, the referring court also seeks clarification on the relevance, for the purpose of interpreting Articles 63 and 65 of the VAT Directive, of the fact that the building right established in favour of Orfey may be extinguished. It should be noted that the referring court indicates that the building right in question may be extinguished only if the limitation period provided for in Article 67(1) of the ZZS is expressly relied on. That possibility should accordingly be regarded as a mere cancellation condition for the purposes of Article 90(1) of the VAT Directive. Therefore, as rightly pointed out by the Bulgarian Government and the Commission, the fact that such a condition may potentially be relied on in the future does not cast doubt on the fact that the transaction is completed at the time the building right is established since, as indicated in paragraph 29 above, at that time all the relevant information concerning that future supply of services is already known and, therefore, in particular, the services in question are precisely identified. Consequently, such an eventuality does not affect that interpretation." ​(Orfey Balgaria EOOD C-549/11)​
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