Input Tax

Sales tax you paid on your purchases, which you can adjust against the sales tax you collect.

Explained Simply

When a registered business buys taxable goods or services, the sales tax it pays is input tax. It can be set off against output tax, so you effectively pay tax only on your value addition.

Legal Definition

Section 7 of the Sales Tax Act, 1990.

📖 Sales Tax Act 1990, s.7

Educational definition, not legal advice. Verify against the statute text (Sales Tax Act 1990, s.7) before acting.