- Input tax is disallowed if tax payment is deferred on imported plant, machinery, equipment, or vehicles for project use and they are not re-exported within one month after project completion.
- Deemed input credit is available for wholesale and retail traders registered on or after 1 April 2026, for unsold stocks at the time of VAT registration (excluding First Schedule items).
- Deemed input tax is calculated at the VAT rate applicable at the time of purchase.
- Traders must maintain and submit prescribed records of unsold stocks with their VAT return.
Source: assets.kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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