Value Added Tax Act 1994 section 11

Transfer or disposal for no consideration

Section 11 explains how to determine the value of goods acquired from a member state where no consideration (payment) is involved, using a hierarchy of valuation methods.

• Where goods are acquired from a member state and treated as a supply but no payment is made, a specific valuation method must be used to establish the transaction value.
• The primary method is to value the goods at what you would pay to purchase identical goods of the same age and condition at the time of acquisition.
• If identical goods cannot be found, the value is based on the cost of purchasing similar goods of the same age and condition; failing that, the cost of producing the goods at that time is used.
• Any VAT included in the notional purchase price must be stripped out when arriving at the valuation figure.