Definition: Deductible VAT

Category: SNA

Deductible VAT is the VAT payable on purchases of goods or services intended for intermediate consumption, gross fixed capital formation or for resale that a producer is permitted to deduct from his own VAT liability to the government in respect of VAT invoiced to his customers.

This definition is used both in SNA 1993 (§ 6.209) and in SNA 2008 (§ 6.58 and 14.45). http://ec.europa.eu/eurostat/ramon/statmanuals/files/SNA2008.pdf United Nations, System of National Accounts (SNA) 1993, United Nations, New York, 1993