Valuation ― basic principles

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note considers some of the basic principles associated with valuing supplies for VAT purposes, namely:

•
how to value supplies when consideration is wholly in money
•
how to value supplies where the consideration is not wholly in money
•
issues related to whether amounts are inclusive of exclusive of VAT

For an overview of valuation for VAT more broadly, see the Valuation ― 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 (‘consideration’ is broadly synonymous with payment but see the Supply and consideration ― is the supply for consideration? guidance note for further details).

Where consideration is wholly in money, then the value of

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