Value Added Tax Act 1994 section 20

Valuation of acquisitions from other member States

Section 20 explains how to determine the value of goods acquired from another EU member State for VAT purposes.

• The value of goods acquired from another member State is based on the value of the transaction through which they are acquired.
• Where the consideration is entirely in money, the value equals that monetary amount; where it is partly or wholly non-monetary, the value is the equivalent amount in money.
• If a single consideration covers more than just the acquisition, only the portion properly attributable to the acquisition is treated as its value.
• Where the acquisition is not made as part of a taxable supply, the valuation rules in this section and Schedule 7 apply instead of the general supply valuation rules in section 19 and Schedule 6.