Input or output vat

Tax paid on purchase of goods is input vat and that charged on sales is output vat. output vat is payable to government after claiming setoff of input vat

Tax paid on purchase of goods is input vat and that charged on sales is output vat. output vat is payable to government after claiming setoff of input vat. rates differ from state to state

Vat which is payable  or paid by the buyer when it purchases the goods is called input vat. This input vat can be used to set off the liability payable when goods are sold which is called as the output vat. Rates are specified in the schedules.