IEIM901710 - Form of Consideration

The reference to “in any form” in the definition means that Consideration can include money, as well as other forms of payment such as crypto currencies, and payments in kind. 

The model rules state that the Consideration paid or credited in a fiat currency must be reported in the currency in which it was paid or credited.

Where Consideration is paid or credited in any form other than fiat currency, it should be reported in the local currency of the jurisdiction of the Platform in a manner that is consistently determined by the Platform Operator (PO). The conversion can be done at the time of the transaction, or at the year end, or on some other basis, as long as the conversion method is consistent for all Sellers and all Reportable Periods.

The OECD states that POs should use a consistent exchange rate. The following is a link to foreign exchange rates from HMRC: Exchange rates from HMRC in CSV and XML format - GOV.UK (www.gov.uk).

Payments made to Sellers in a non-cash form, such as a payment in kind or by exchange of an item or service in a barter transaction, are payments ‘in any form’ and hence are within scope of the rules. The value of the item or service should be treated as the amount of the Consideration. However, if the PO does not know the value of the item, or cannot reasonably determine what it is, the payment in kind will not be Consideration (see 901730).