Definition

Input VAT Recovery is the process of reclaiming VAT paid on business purchases and expenses that relate to taxable supplies.

Key points

• Allowed only with valid Tax Invoices and business purpose.
• Not recoverable on personal expenses, motor vehicles for private use, or entertainment.
• Must be reported in the same VAT period as incurred or within the next one.

Practical example

A firm buys laptops for employees and reclaims the 5% VAT in its next return since they’re used for business.

Why it matters

Ensures businesses recover eligible VAT while staying compliant with FTA documentation rules.