Value Added Tax Act 1994 section 19

Value of supply of goods or services

Section 19 sets out how to determine the value of a supply of goods or services for VAT purposes, including supplies for monetary consideration, non-monetary consideration, mixed supplies, and open market value.

• Where a supply is made for money, the value is the amount which, when VAT is added to it, equals the total consideration paid — in other words, the VAT-exclusive price.
• Where the consideration is partly or wholly non-monetary (for example, a barter or exchange), the value is the equivalent amount in money which, with VAT added, matches the consideration given.
• Where a single monetary payment covers more than one supply, the value of each individual supply is the portion of the total consideration that is properly attributable to it.
• The open market value of a supply is the price that would be agreed between unconnected parties — that is, persons whose relationship would not influence the amount paid.