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Output VAT is the tax you charge your customers on your sales. Every tax invoice you issue adds to your output VAT for the period.
Input VAT is the tax you pay on your business purchases — vendor bills and expenses. Where allowed, you can recover input VAT against the output VAT you owe.
Net VAT is simply: output VAT − input VAT. A positive figure is usually payable; a negative figure may be a refund/credit position, depending on the rules that apply to you.
| Source | Adds to |
|---|---|
| Sales invoices | Output VAT |
| Vendor bills | Input VAT |
| Expenses | Input VAT |
| Net position | Output − Input |
Some supplies are zero-rated or exempt and are treated differently from standard-rated sales. If you invoice in more than one currency, summaries should convert using consistent, saved exchange rates so totals are comparable.
Reports are only as good as the records behind them. Exclude cancelled and draft documents, check unusual tax rates, and review the summary with your accountant before submitting your return.
The VAT/Tax Center pulls output tax from sales, input tax from bills and expenses, and shows your net position — by code and by period, exportable for review. It is a filing reference from your own records, not an official submission to any tax authority.
Start free with the invoice tool, or open the business dashboard.