Recoverable Input VAT
Code: 1175
👁 Views: 88
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Represents VAT paid on purchases (goods, raw materials, services, fixed assets) that is recoverable from tax authorities.
Note: May be split as required by law into:
- VAT on Purchases
- VAT on Expenses
- VAT on Fixed Assets
This account can be broken down into sub-ledgers by expense type or asset category if tax laws require separate treatment or settlement.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 1
Presentation of Financial Statements
US GAAP
ASC 210
Balance Sheet
❓ Frequently Asked Questions
Q: What is recoverable input VAT?
A: VAT paid on purchases that the company is entitled to recover from the tax authority.