Valuation ― special rules

Produced by Tolley
Valuation ― special rules

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Valuation ― special rules
  • Goods ― acquisitions from other EU member states
  • Transactions involving connected persons
  • Transfers and disposals of business assets
  • Currencies other than sterling
  • Importing goods
  • Reverse charge services
  • Connected persons
  • Non-business use of services supplied to a business
  • Supplies of goods for no consideration
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

This guidance note provides an overview of the special valuation rules that are applied to certain types of transactions. This note should be read in conjunction with the Consideration, Consideration ― specific situations and Valuation ― introduction guidance notes.

The general rules regarding the valuation of goods and services supplied for VAT purposes are outlined in the Valuation ― introduction guidance note but are subject to any of the special valuation rules outlined below. If there is any conflict between the special valuation rules explained below then the business needs to use the following order of preference of the special valuation rules in order to apply the correct valuation to the goods / services supplied.

Special valuation ruleOrder of preference
(a) Provisions other than those contained in VATA 1994, Sch 6. Comprising of:Acquisitions from other EU member states ― VATA 1994, s 20, Sch 7
Imports ― VATA 1994, s 21
Machine games takings ― VATA 1994, s 23
Non-business use of services supplied to a business ― SI 1993/1507
(b) Provisions in VATA 1994, Sch 6. Comprising of:Transactions between connected persons ― Sch 6, para 1
Use of stock in trade cars of motor manufacturers and motor dealers for less than market value ― Sch 6, para 1A
Supplies of goods to non-taxable persons for retail sale (‘direct selling’) ― Sch 6, para 2
Imports and warehoused goods subject to excise duty ― Sch 6, para 3
Discounts ― Sch 6, para 4
Tokens, stamps and vouchers ― Sch 6,

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