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HMRC internal manual

VAT Valuation Manual

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HM Revenue & Customs
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Special valuation provisions: value of supplies subject to reverse charges - Paragraph 8, Schedule 6, VATA 1994

Paragraph 8 of Schedule 6 to VATA 1994 provides as follows:

  1. 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 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.”

Whether the supply is one to which the reverse charge procedure applies is a question for the VAT Supply team, as is its valuation. Value is derived from the consideration upon a VAT exclusive basis. Unlike Section 19, paragraph 8 provides that the value is an amount equal to the consideration rather than an amount which, when VAT is added, equals the consideration.