VAT Public Clarification – VATP042, Value of Supply – Barter Transactions
- Definition of Barter Transactions: Barter transactions involve the exchange of goods and/or services between parties, each making a supply to the other, and are subject to standard VAT rules with specific valuation considerations.
- Valuation of Supply: The value of the supply in a barter transaction is determined by the market value of the non-monetary consideration received, excluding any tax amount.
- Mixed Consideration: If a supplier receives both monetary and non-monetary consideration, the value of the supply is calculated as the monetary part plus the market value of the non-monetary part, again excluding the tax amount.
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
