Books

Value of Supply


Value of Supply

What is the value of supply under VAT?
The value of supply is the amount that a seller collects for the supply of goods or services. It includes any expenses and charges that the supplier passes on to the buyer, such as shipping and handling charges. In other words, the value of supply is the consideration paid by the buyer, excluding VAT.

Value of supply + VAT = Consideration
and
Consideration - VAT = Value of supply

The consideration for the supply can be monetary, non-monetary or a combination of both.

What factors reduce the value of supply?
The following factors can reduce the value of supply:

Note: If the value of supply is expressed in a foreign currency, it will be converted into AED, or the currency of the relevant member state, based upon the current exchange rate.



       
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