While barter deals are quite common in business especially in media industries, calculation and payment of VAT is quite tricky. For a full barer deal both parties raised invoices with VAT to each other, accordingly not paying any actual cash to Govt. by reversing input and output charges of equal amount. How does the Govt. will report its VAT revenue in this scenario? Just imagine if all business transactions were bartered, then is there any sense of charging and reporting VAT?