Background: importance of consideration
The majority of this guidance is devoted to special valuation rules that apply when:
- the consideration is not wholly in money
- a single consideration is payment for supplies with different liabilities, or
- special circumstances exist requiring special valuation rules to be applied.
In all cases the correct valuation rule will depend upon correctly identifying the consideration given for the supply. You should not attempt to value a supply until you have established what the consideration is.
These issues are covered in the guidance as follows:
|VATVAL03000||Apportionment of Monetary Consideration: explains how an apportionment may be necessary when a consideration is given in return for supplies of differing liabilities. It contains specific guidance on methods of apportionment proven to be suitable across a wide spectrum of circumstances.|
|VATVAL05000||Non-Monetary Consideration: provides guidance which will help you to value a consideration that is wholly or partly not in money.|
|VATVAL07000||Special Valuation Provisions: gives guidance on the special rules found in Schedule 6 of the VATA 1994, which take precedence over sections 19(2) to 19(4) of the Act. This section explains the situations in which you will need to use these special rules and gives guidance on how they should be operated.|
|VATVAL10000||Valuation of Acquisitions: gives guidance on how to value acquisitions from other Member States which are covered by Section 20 and Schedule 7 of the VATA 1994.|