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HMRC internal manual

VAT Place of Supply of Services

HM Revenue & Customs
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Reverse charge: valuation

Paragraph 8 of Schedule 6 to the VAT Act 1994 provides that

Where any supply of services is treated by virtue of section 8, or any supply of goods is treated by virtue of section 9A, as made by the person by whom they are received, the value of the supply shall be taken-

(a) in a case where the consideration for which the services or goods were in fact supplied to him was a consideration in money, to be such amount as is equal to that consideration; and

(b) in a case where that consideration did not consist or not wholly consist of money, to be such amount in money as is equivalent to that consideration.

Section 8 of provides that the value of any supplies made using the reverse charge provisions is the total amount paid, including any taxes levied abroad, converted into sterling. The value used in such circumstances should include non-monetary consideration, where applicable, as well as monetary consideration. The value of all reverse charge services received (whether taxable or exempt) must be included in the ‘value of sales’ and ‘value of purchases’ boxes on the VAT return.