Output

Tax

The VAT due on the sale or lease

of taxable goods/properties/
services by any person registered
or required to register under the
VAT system

What the taxpayer-seller passes

on to the purchaser

Input
Tax

The VAT due from or paid by a

VAT-registered person on
importation of goods or local
purchases of goods, properties,
or services, including lease or use
of properties, in the course of his
trade or business

It also includes: the transitional

input tax; the presumptive input
tax; input taxes which can be
directly attributed to transactions
subject to VAT plus a ratable
portion of any input tax which
cannot be directly attributed to
either the taxable or exempt
activity.