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Contents
What is input and Output VAT:
What is input and Output VAT? VAT paid by a business on purchases of goods or services used in its business operations. Businesses can claim input VAT as a credit against their output VAT liability, which is the VAT charged on sales of goods and services.
Understanding Output VAT:
How does the VAT work? Output VAT is the VAT charged on sales of goods and services. Businesses are required to charge VAT on their taxable supplies and include it in their sales invoices
| Business Charges on VAT on Goods and Services (OUTPUT VAT) |
| Business Paying a VAT on Purchases (INPUT VAT) |
| NET VAT Output Vat- Input Vat = Net Vat |
| If Possible payable to the Federal TAX Authority | If Possible payable to the Federal TAX Authority |
Understanding VAT Refunds
In some cases, businesses may be eligible for VAT refunds.
For example, if a business has more input VAT than output VAT in a specific period, it may be eligible for a refund. Businesses can apply for a VAT refund through the FTA’s online portal.
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