When must a VAT invoice be issued?

A VAT invoice must be issued at the time of a sale or before payment, depending on the terms agreed upon between the seller and the buyer. This means that the invoice serves as a formal record of the transaction, capturing the essential details such as the nature of the goods or services provided, the amount charged, and the VAT applied.

Issuing the invoice at this stage is important for both tax compliance and cash flow management, as it demonstrates the seller's obligation to account for VAT. It also ensures that buyers receive documentation they can use to reclaim VAT, if they are entitled to do so. The timing aligns with the way businesses typically track sales and revenue, reinforcing the need for proper invoicing practices.

In contrast, other options suggest either restricting the issuance of the invoice to specific triggers, such as delivery or payment, which does not fully adhere to VAT regulations and may complicate bookkeeping and accounting processes, potentially leading to cash flow issues and tax discrepancies.