The excess of VAT incurred over VAT charged in a specific tax period, which is usually a quarter. In this situation, the business owner can request a refund or offset it in subsequent quarters if they file quarterly tax returns. The tax authority will owe them VAT when the VAT incurred, which has the deductible condition, exceeds the charged VAT in the corresponding declaration period.
« Back to Glossary IndexVAT to be offset
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