Input VAT recovery

Input VAT recovery refers to the process by which businesses can reclaim the Value Added Tax (VAT) they've paid on their purchases or expenses related to their taxable activities. Essentially, when a business buys goods or services, it pays VAT to the supplier. If the business is VAT-registered, it can recover this VAT from the tax authorities, reducing its overall tax burden. This mechanism ensures that VAT is ultimately paid only on the value added at each stage of production or distribution, preventing tax cascading and supporting the cash flow of businesses.