Input VAT that may be claimed against output VAT is that incurred on:

Question

Accepted Answer

Goods purchased for resale or used directly in production. The VAT Act restricts recoverable input VAT to goods purchased for resale and goods that form part of the stock-in-trade used directly in producing new products. VAT on overheads, services and capital items is expensed rather than reclaimed.

Answer

A) Overhead and administrative services

Answer

B) Goods purchased for resale or used directly in production

Answer

C) Capital assets of the business

Answer

D) All purchases made by the business

Input VAT that may be claimed against output VAT is that incurred on:

Practice more Taxation questions