Input tax is the VAT paid or payable by taxable persons on goods or services supplied to them (or acquired by them from another European Union ( EU) Member State), which are used, or to be used, for the purpose of their business. VAT registered persons can reclaim input tax. HM Customs & Revenue Glossary
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input tax UK US noun [C or U] ACCOUNTING, TAX
► a tax that is added to goods and services that a business buys to make its own goods or provide its own services: »
The VAT tribunal held that the company could deduct the input tax paid on transportation costs.
Financial and business terms. 2012.