Input VAT is the VAT you pay on your purchases. A registered business can deduct it from the VAT it collects on sales — but only when the conditions are met.
The conditions
- You hold a valid tax invoice showing the supplier's VAT number.
- The purchase is used to make taxable supplies (standard or zero-rated).
- The supplier is registered for VAT.
- For imports, you hold the customs documents showing the VAT paid.
When it is blocked
The regulations block recovery on certain costs, such as entertainment and hospitality, and vehicles used privately. Purchases used for exempt supplies are not recoverable either.
Mixed businesses
If you make both taxable and exempt supplies, input VAT on shared costs is apportioned between them.
Tip
Review supplier invoices every month. A missing VAT number or a wrong amount means lost recovery — and a question in any inspection.
Try it yourself: VAT calculatorOpen the tool
Official sourceZATCA ↗Last reviewedOctober 2026
TopicsInput VAT recoveryVAT deductionBlocked input tax
