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Accounting & Tax vocabulary · VAT & Indirect Tax

output VAT

Meaning in accounting & tax, with examples

nounCommon term

In accounting & tax, output VAT means: The VAT a business charges its customers on sales and must pay over to the tax authority after deducting the input VAT it has paid.

In Turkish: hesaplanan KDV, satış KDV'si

How it is used

Calculated on every taxable sale and shown on the sales invoice. Output VAT minus input VAT gives the VAT payable for the period.

Example sentences

  1. Output VAT is due when the invoice is issued, even if the customer hasn't paid yet.

  2. Our output VAT was much higher in December because of year-end sales.

Common collocations

  • charge output VAT
  • output VAT liability
  • VAT payable
  • input VATThe 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.
  • 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.
  • revenueThe income a business earns from its normal activities, mainly from selling goods or services, before any costs or expenses are deducted.

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