Question

Define Input Tax related to VAT.

Answer 1

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The tax paid by a dealer on his/her purchases of goods for resale(subject to tax under VAT) during any fixed tax perios is called Input Tax. The Input Tax is calculated on all taxable purchases at the applicable tax rates.

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Answer 2

Answer:

Value-added tax (VAT),

1)If the person or businesses that is buying is registered for VAT they can deduct the amount of VAT paid from his/her settlement with the tax authorities.

2)This statement states that the value added tax added to the price when you purchase goods or services that are liable to VAT.

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