Okuzeka
Accounting & Tax vocabulary · VAT & Indirect Tax

input VAT

Meaning in accounting & tax, with examples

nounCommon term

In accounting & tax, input VAT means: The VAT a business pays on its purchases of goods and services, which it can usually deduct from the VAT it charges on its own sales.

In Turkish: indirilecek KDV, alış KDV'si

How it is used

Businesses reclaim or recover input VAT on the VAT return. If input VAT is higher than output VAT, the difference is carried forward or refunded, depending on the rules.

Example sentences

  1. Input VAT on some company cars cannot be deducted.

  2. This month our input VAT exceeded our output VAT, so the balance is carried forward.

Common collocations

  • reclaim input VAT
  • deductible input VAT
  • input VAT credit
  • VAT carried forward
  • output VATThe VAT a business charges its customers on sales and must pay over to the tax authority after deducting the input VAT it has paid.
  • VATValue added tax: a tax on the sale of most goods and services, collected at each stage of the supply chain and finally paid by the end consumer.
  • VAT returnA periodic form a business submits to the tax authority showing output VAT on sales, input VAT on purchases and the net amount to pay or reclaim.
  • invoiceA document a seller sends to a buyer listing the goods or services supplied, the amount due, any VAT and the payment terms.

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This page explains English vocabulary for learners. It is not financial advice.