Inputs and Outputs

Merchants charge VAT on their sales. This is called output VAT, and deals are called output. Similarly, VAT is levied on most goods and services purchased by the business. This is called input VAT. The customer output VAT is charged on behalf of HMRC and must be paid to them regularly.

However, input VAT on goods and services purchased will deduct from the output tax amount. In respect of the Third Party, UK Business Entertainment and the input tax on specific categories such as most commercial cars are non-refundable.