Value Added Tax Act 1994 Schedule 6

Part 2 — Other provisions (paragraphs 1–13)

Schedule 6, Part 2 sets out special valuation rules that apply in a range of circumstances, including supplies between connected persons, supplies of motor cars by manufacturers and dealers to employees, supplies of road fuel, goods subject to excise duty, prompt payment discounts, deemed supplies of goods and services, reverse charge supplies, intra-group supplies, long-stay accommodation, employee catering and accommodation, currency conversion, low-value imported works of art, and third-party payments.

• HMRC can direct that supplies between connected persons, and certain other undervalued supplies, be revalued to open market value where the recipient cannot recover all input tax
• Special rules apply to motor cars supplied by manufacturers or dealers to employees and their relatives, road fuel supplied to connected persons or employees, and goods bearing excise duty or agricultural levies
• Deemed supplies of goods are valued at replacement cost (or production cost if replacement cost cannot be determined), deemed supplies of services are valued at full cost, and reverse charge supplies are valued at the actual consideration paid
• Further rules cover prompt payment discounts, long-stay accommodation, employee catering, currency conversion, low-value imported works of art, and third-party payments forming part of the consideration