VATTOS9650 - Tax points for specific types of supply: Stallion nominations
The British Bloodstock Agency covering season runs from 15 February to 15 July each year. A mare may be sent to the stallion at any time during the season and as many times as necessary, until she is in foal or the season ends. Contracts are therefore not binding until 15 July. Furthermore invoices are not normally issued before this time or payments received.
It has been agreed with the British Bloodstock Agency that the following basic tax points will apply depending on the type of contract. For “straight” nominations the fee becomes payable at the end of the season (15 July). The season end date also represents the basic tax point.
With “no foal, no fee” nominations, as the name suggest no fee is payable unless a foal is produced. Under these arrangements barren certificates are required by 1 October and this date also represents the basic tax point.
It is known that other organisations offer similar services and on similar terms. The same principles may be applied in applying the basic tax point rules. In all cases the normal VAT invoicing and payment tax point rules apply.