Commentary

V3.155 Value—incidental expenses

Part V3 Supplies, acquisitions and imports

V3.155 Value—incidental expenses

V3.155 Value—incidental expenses

Directive 2006/112/EC, art 78(b)1 provides that the 'taxable amount' (ie value) in respect of a supply of goods or services includes incidental expenses such as commission, packing, transport and insurance costs charged by the supplier to the purchaser or customer. Expenses covered by a separate agreement may be considered by member states to be incidental expenses, although the UK has not availed itself of this option.

UK legislation provides that the value of a supply for a consideration in money is such amount as, with the addition of the tax chargeable, is equal to the consideration2. Any amounts recovered by the supplier in respect of incidental expenses are therefore included in the value of the supply by virtue of the fact that consideration includes all

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