(1)For the purposes of this Act the value of any supply of goods or services shall, except as otherwise provided by or under this Act, be determined in accordance with this section and Schedule 6, and for those purposes subsections (2) to (4) below have effect subject to that Schedule.
(2)If the supply is for a consideration in money its value shall be taken to be such amount as, with the addition of the VAT chargeable, is equal to the consideration.
(3)If the supply is for a consideration not consisting or not wholly consisting of money, its value shall be taken to be such amount in money as, with the addition of the VAT chargeable, is equivalent to the consideration.
(4)Where a supply of any goods or services is not the only matter to which a consideration in money relates, the supply shall be deemed to be for such part of the consideration as is properly attributable to it.
(5)For the purposes of this Act the open market value of a supply of goods or services shall be taken to be the amount that would fall to be taken as its value under subsection (2) above if the supply were for such consideration in money as would be payable by a person standing in no such relationship with any person as would affect that consideration.
Cases considering section 19 26
[2003] UKHL 67 · 4 December 2003Interprets
Where consideration is wholly or partly non-monetary, its value is the money amount which, together with chargeable VAT, is equivalent to that consideration. The full agreed part-exchange price was the relevant monetary equivalent, rather than Lex’s lower internal true value.
[2018] EWCA Civ 1515 · 29 June 2018Interprets
The court construed the statutory rules for valuing supplies, principally section 19(2), in considering VAT-inclusive and VAT-exclusive consideration. (see paras [56]–[61]; [86]–[90])
Section 19(2) does not gross up consideration. It splits VAT-inclusive consideration into taxable value and VAT. Where the supplier has no contractual right to recover further VAT, it supports treating the paid price as VAT-inclusive; the issue was unnecessary to the result. (see paras [58]–[61]; [86]–[90])
[2002] EWCA Civ 1115 · 31 July 2002Limits
Section 19(1) identifies the statutory basis for determining the value of a supply, subject to Schedule 6. The court used it as the introductory framework for the valuation provisions. (see [The law])
Section 19(2) states the money-consideration valuation rule. The court contrasted it with the rule for consideration that is wholly or partly non-monetary. (see [The law])
Section 19(3) requires the value of partly non-monetary consideration to be expressed as the monetary equivalent of the consideration. The court applied that framework to the surrendered clubs. (see [The law]; [Conclusions])
Section 19(5) provides the statutory open-market-value rule. The court treated open market value as exceptional and retained the transaction-specific valuation rule as general. (see [The law])
6 more judgments, and what each says about section 19, are in the
case-law panel in the full Act.