Input tax recovery

Input tax recovery refers to the process where businesses can reclaim the Goods and Services Tax (GST) paid on purchases related to their business activities. When a company buys goods or services, it often pays GST, which is part of the purchase price. If the business is registered for GST, it can deduct this amount from the GST it owes to the government when selling its products or services. This ensures businesses are not taxed twice for the same expense, effectively recovering the GST paid on inputs used for their operations.