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What is the Basic Principle of VAT in Law

As per Lawkidunya, the basic principle of VAT is that, in a chain of standard rated transactions, each taxable person pays VAT (known as input tax) on the supplies it receives, and charges VAT (known as output tax) on the supplies it makes to its own customers. The taxable persons recover their input tax by subtracting it from the output tax they have to pay to HMRC.

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