Value of supply

(1) In this section, “tax fraction”, in relation to a taxable supply, means the fraction calculated in accordance with the following formulaR/ (100+R) where R is the rate of GST applicable to the supply as (2) Subject to this section– (a) the value of a taxable supply is the consideration for the supply reduced by an amount equal to that sum multiplied by the tax fraction; (b) the value of a supply that is not a taxable supply is the consideration for the supply; and (c) the value of a supply that is partly taxable is the consideration for the supply, minus the tax fraction of the part of the consideration that relates to the taxable part of the supply. (3) Where the recipient of the supply stands in such a relationship as affects or could reasonably be expected to affect the amount of the consideration, the value of the supply is the GST-exclusive fair market value of the supply. (4) The value of a supply by an employer to an employee is limited to the amount of the consideration in money (if any) payable by the employee for the supply, reduced by the tax fraction of that amount, if the supply is of– (a) accommodation for a period not exceeding an aggregate of thirty days in any twelve month period; or (b) meals. (5) Where a registered person is deemed to make a supply of goods or services under section 15(2) because the person has ceased to carry on a business, or ceased to be registered but continues to carry on business, the value of that supply is the lesser of– (a) the GST-exclusive fair market value of the goods or services at the time of the deemed supply; or (b) the value of the acquisition or importation, as the case may be, of the goods or services by the registered person at the time of acquisition or importation, Provided that, if only part of the input tax for the original acquisition or importation was allowed as a credit to the taxable person, the value determined under this sub-section is reduced by the proportion of the input tax for which a credit was not allowed. (6) Except as provided otherwise, the value of a supply of goods or services for no consideration is nil. 37 (7) The value of an unconditional gift given to an approved non-profit body is nil if anything received by the donor as a consequence of the gift is of insignificant value, such as a recognition or acknowledgement of the gift. (8) The Regulations may specify or vary the way in which the value of a particular kind of supply is determined.