- Barter transactions involve exchanging goods or services without cash.
- VAT rules apply to barter transactions, requiring compliance to avoid penalties.
- Value of supply is based on market value, excluding VAT.
- Fair market value must be determined for non-cash exchanges to charge VAT.
- VAT applies to the full value of exchanged goods or services.
- Both parties must issue valid tax invoices as per regulations.
- Example: Photographer and boutique exchange services and goods, both must account for VAT.
- Proper valuation and accurate VAT calculation are essential for compliance.
Source: hlbhamt.com
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.
