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Open market value rules

In certain circumstances, supplies are valued at their ‘open market value’ for VAT purposes rather than in accordance with the normal valuation principles set out in the Valuation ― basic principles guidance note.

Circumstances in which open market value rules may apply include:

1. •

   supplies between certain connected persons

2. •

   ‘direct selling’ arrangements

3. •

   where a ‘self-supply’ occurs under rules for stock in trade cars (see the Input tax ― buying and leasing cars and other vehicles guidance note)

4. •

   where fuel is supplied to employees / certain connected persons at below cost (see the Input tax - motoring expenses guidance note)