½Û×ÓÊÓƵ

Valuing supplies when consideration is wholly in money

Often consideration for a supply will be given exclusively in money (‘consideration’ is broadly synonymous with payment but see the Supply and consideration ― is the supply for consideration? guidance note for further details).

Where consideration is wholly in money, then the value of the supply for VAT purposes is the amount which, with the addition of VAT, is equal to the consideration. This is easier to understand with the aid of numbers. For example, if a person gives consideration