Value Added Tax Consolidation Act 2010 section 37

General rules on taxable amount

Section 37 sets out the general rules for determining the taxable amount — that is, the amount on which VAT is charged — for supplies of goods and services, intra-Community acquisitions, and transactions involving non-monetary or foreign-currency consideration.

• VAT is chargeable on the total consideration the supplier becomes entitled to receive, including all taxes, commissions, costs and charges, but excluding the VAT itself.
• The same rule applies to intra-Community acquisitions: VAT is charged on the full consideration excluding VAT.
• Where consideration is not wholly in money (for example, a barter or part-exchange), the taxable amount is the open market price that would reasonably be expected if the transaction were conducted entirely for cash.
• Where consideration is expressed in a foreign currency, the exchange rate used is the latest selling rate recorded by the Central Bank of Ireland or the European Central Bank at the time VAT becomes due, unless an alternative method has been agreed with Revenue.