Glossary
Input VAT
Definition
Input VAT is the VAT that a supplier charged the company on a purchase. Whether it can be reclaimed depends on the purchase and its use, under the VAT rules. Input VAT is subtracted from output VAT in the VAT return.
Example. A supplier invoice for €200 plus €48 VAT carries €48 of input VAT, which may be reclaimed in the return.
Why it matters for your company
Input VAT lowers the VAT you pay each month. Keeping the supplier invoice with the VAT shown is what makes it reclaimable.
Where you see it in Sapita
On each purchase line in expenses, and in the input VAT line of the KMD.