Section 13

Taxable value of supply

(1) Subject to this Act, the taxable value of a supply, including a supply of imported services, shall be-

• (a) the consideration for the supply; or
• (b) if the supplier and recipient are related, the open market value of the supply.

Finance Act, 2018Effective 1st July 2018 
(2) The taxable value of a supply of mobile cellular services shall be the value of the services as determined for the purposes of the duty imposed under the law relating to excise. 

(3) Subject to subsections (4) to (6), the consideration for a supply, including a supply of imported services, shall be the total of –

• (a) the amount in money paid or payable, directly or indirectly, by any person, for the supply; or 
• (b) the open market value at the time of the supply of an amount in kind paid or payable, directly or indirectly, by any person, for the supply; and
• (c) any taxes, duties, levies, fees, and charges (other than value added tax) paid or payable on, or by reason of the supply, 

reduced by any discounts or rebates allowed and accounted for at the time of the supply. 

(4) The consideration for a supply shall include the amount charged for – 

• (a) any wrapper, package, box, bottle, or other container in which goods are supplied; 
• (b) any other goods contained in or attached to the wrapper, package, box, bottle or other container referred to in paragraph (a);or 
• (c) any liability that the purchaser has to pay to the vendor by reason of or in respect of the supply in addition to the amount charged as price.

(5) In calculating the value of any services for the purposes of subsection (1), there shall be included any incidental costs incurred by the supplier of the services in the course of making the supply to the client:

• Provided that, if the Commissioner is satisfied that the supplier has merely made a disbursement to a third party as an agent of his client, then such disbursement shall be excluded from the taxable value.

(6) The consideration for a supply shall not include –

• (a) in the case of a supply of goods under a hire purchase agreement, any financial charge payable in relation to a supply of credit under the agreement; or 
• (b) any interest incurred for the late payment of the consideration for the supply.

No. 28 of 2011 

Finance Act, 2016Effective 1st January 2017 
(7) The consideration for a supply of accommodation or restaurant services shall not include the Tourism Levy imposed on the supply under the Tourism Act; or any service charge paid in lieu of tips.  

• Provided that this subsection shall only apply in respect of service charge where—
• (a) the service charge is distributed directly to the employees of the hotel or restaurant in accordance with a written agreement between the employer and the employee; and 
• (b) the service charge does not exceed ten per cent of the price of the service, excluding such service charge. 

(8) For the purposes of this Act, a person is related to another person if-

• (a) either person participates, directly or indirectly, in the management, control or the capital of the business of the other; 
• (b) a third person participates, directly or indirectly, in the management, control or capital of the business of both; or 
• (c) an individual who participates in the management, control or capital of the business of one, is associated by marriage, consanguinity or affinity to an individual who participates in the management, control or capital of the business of the other. 

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