The VAT paid on purchases (known as 'input VAT') can be offset directly against the VAT charged on sales ('output VAT').
VAT incurred on costs associated with making exempt supplies is not recoverable, and deduction is not available for taxpayers who make exclusively zero-rated supplies, other than exports.
Where taxpayers make both standard-rated supplies and zero-rated supplies, only a proportion of the input VAT can be offset or recovered.
Exporters who have paid and withheld VAT on the purchase
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Web page updated on 17 Mar 2025 17:04