The value of supply is the total amount of consideration (money or otherwise) that a supplier receives for a supply, distinguishing it from the tax itself.
Monetary Consideration
If the consideration is entirely monetary, the value of supply is the total amount paid by the recipient less the tax.
Value of Supply = Consideration - VAT
It includes all expenses and charges imposed by the supplier (e.g., delivery fees).
Non-Monetary Consideration
If the consideration is not monetary (e.g., barter), the value of supply is the monetary market value of the non-monetary part plus any cash amount paid.
Factors Reducing Value
- Discounts: If given before or at the time of supply.
- Subsidies: Granted by the government/GCC states.
Foreign Currency
If a supply is priced in a foreign currency, it must be converted to AED using the exchange rate approved by the UAE Central Bank at the date of supply for VAT reporting purposes.