Andrew Needham looks at the valuation provisions when valuing a supply for VAT purposes.
For VAT purposes, the value of a supply is not just the money received, but any other additional ‘consideration’ received (i.e., any goods or services received as well as money in return for the goods or services supplied). This means the full value of the goods or services supplied by the business.
However, getting the correct value of the supply can cause problems and is a common error made by businesses.
Common errors
There are a number of common errors made by businesses when deciding what amount they need to account for VAT on. This article outlines some of the more common examples.
Small businesses selling through internet marketplaces such as Amazon or eBay make sales to individuals
