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The UK legislation on valuation makes specific reference to the inclusion of incidental charges, such as commission, packing, transport and insurance in the context of valuing imported goods¹.

Archived Directive 2006/112/EC, art 78(b)² (that is, the VAT Directive as it stood at Brexit IP completion day³, from which the UK provisions were derived) provides that the 'taxable amount' (ie value) in connection with a supply of goods or services includes incidental expenses, eg commission, packing, transport and insurance costs charged by the supplier to the buyer or customer.

The UK legislation on valuing supplies (as opposed to imports) provides that the value of a supply for a consideration in money is the amount that, with the addition of the tax chargeable, is equal to the consideration⁴. Therefore, any amounts recovered by the supplier in connection with incidental expenses are included in the value of the supply as a result of the fact that consideration includes all amounts receivable from the buyer, customer or a third party⁵.

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