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:

Input tax may include VAT/GST paid on imports, domestic purchases and any VAT/GST self-assessed by the business (e.g., on the purchase of digital services). ... The Worldwide VAT, GST and Sales Tax Guide sets out the detailed VAT/GST recovery rules in more than 120 jurisdictions.