What is input VAT and output VAT?

You don’t know what input VAT and output VAT are? Let’s find out!

When it comes to standard VAT reporting, businesses must take into account two types of VAT: input VAT and output VAT. Confused about the difference? Let’s take a closer look at the definitions of the two terms, as well as how both are normally accounted for when the business has a VAT number in the country where the VAT was incurred or not.

It is important to note that input and output VAT cancel each other out in your So, your VAT paid to the tax authorities in each country will be the difference between these two.

Source: marosavat.com

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