input tax


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Input Tax

In the United Kingdom, the value added tax that a business pays on the products it buys. This contrasts with the output tax, which is the VAT that the business charges customers on what it sells. If the output tax exceeds the input tax, the business must pay the difference to the government. On the other hand, if the input tax exceeds the output, the government refunds the difference to the business.

input tax

see VALUE ADDED TAX.
References in periodicals archive ?
The BIR said that if a taxpayer has no other sales transactions subject to VAT against which its input taxes may be used in payment, then, it follows, that it is constituted as the final person against which the costs of the tax passed on shall legally stop and rest.
So, whether you use an SME loan to purchase machinery or vehicles, remember to claim the input tax credit and thereby lower your tax payments.
In the course of investigation searches were conducted at several places during which various incriminating documents were found which evidenced issuance of fake bills/invoices in a Circular manner among the said companies without any concomitant movement of goods for such transactions thereby proving wrongful availment and utilization of fake input tax credit.
He also highlighted that Singapore pays interest on input tax refunds that are not made within 30 days whereas Malaysia did not.
He was of the view that by eliminating input tax at the import stage, the FBR would be able to reduce monthly refund claims by Rs160 million, which would ultimately give a sigh of relief to the farmers.
By eliminating the aforesaid input tax at import stage, FBR will be reducing monthly refund claims to the tune of Rs160m which will ultimately give a sigh of relief to the industry and poor farmers,' he added.
The supplier must send a VAT-compliant tax sales credit note to the customer, obliging the customer to repay the input tax recovered.
Analysis of data of some registered businesses reveals that they have applied for input tax in relation to purchases that were not related to their business activity.
Before the February GST Council meeting, the GST on real estate was 12% with input tax credit and for affordable housing it was 8% with input tax credit.
Input tax - tax paid by a taxable person on goods or services purchased.
A key principle of a VAT system is the ability for a business to offset the VAT incurred on purchases (input tax) against the VAT charged on sales (output tax).
While for small service providers, the Council may announce a flat 5 percent GST though these businesses may not get the benefits under Input Tax Credit.