Valuation of related-party supplies: prioritize open market value, with fallbacks and special rules for onward supply and input tax credit. Value of supply between distinct or related persons not through an agent is determined primarily by open market value, failing which by the value of like kind and quality supplies, and if still not determinable, by application of rule 4 or rule 5. Supplier may elect a reduced valuation when goods are intended for onward supply by the recipient, and where the recipient is eligible for full input tax credit the invoice value is deemed to be the open market value.
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Valuation of related-party supplies: prioritize open market value, with fallbacks and special rules for onward supply and input tax credit.
Value of supply between distinct or related persons not through an agent is determined primarily by open market value, failing which by the value of like kind and quality supplies, and if still not determinable, by application of rule 4 or rule 5. Supplier may elect a reduced valuation when goods are intended for onward supply by the recipient, and where the recipient is eligible for full input tax credit the invoice value is deemed to be the open market value.
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