Tax

What Is Input Tax Credit?

VAT or GST paid on business purchases that you offset against output tax.

Detailed Explanation

Requires valid tax invoices and taxable use. Deadlines and caps apply by country.

Example

You claim ITC on software subscriptions used wholly for taxable sales.

Why It Matters

Maximizes after-tax margin when documented properly.

Related Resources

Related Tax Terms

Value Added Tax (VAT)Goods and Services Tax (GST)Sales TaxWithholding TaxReverse ChargeZero-Rated Supply

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