What is Input VAT?
The VAT a registered vendor pays on business purchases and expenses, which it may deduct from output VAT when used to make taxable supplies.
When you buy goods or services for your business from another VAT vendor, the VAT on their invoice is your input tax. You can deduct it on your VAT201 if you use the purchase to make taxable supplies and you hold a valid tax invoice.
Some input tax can never be claimed, for example on most entertainment and on many passenger vehicles. If you use something partly for exempt or private purposes, you may only claim a portion.
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