Valuation 鈥� basic principles
Value Added Tax
Guidance
This guidance note considers some of the basic principles associated with valuing supplies for VAT purposes, namely:
- 鈥�
how to value supplies when consideration is wholly in money
- 鈥�
how to value supplies where the consideration is not wholly in money
- 鈥�
issues related to whether amounts are inclusive of exclusive of VAT
For an overview of valuation for VAT more broadly, see the Valuation 鈥� overview guidance note.
In-depth commentary on the legislation and case law is provided in De Voil Indirect Tax Service V3.151.
Valuing supplies when consideration is wholly in money
Often consideration for a supply will be given exclusively in money (鈥榗onsideration鈥� is broadly synonymous with payment but see the Supply and consideration 鈥� is the supply for consideration? guidance note for further details).
Where consideration is wholly in money, then the value of the supply for VAT purposes is the amount which, with the addition of VAT, is equal to the consideration. This is easier to understand with the aid of numbers. For example, if a person gives consideration
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