Construction
VAT Input on Material Purchases
Recording recoverable VAT on material purchases from VAT-registered suppliers.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Material Inventory / WIP | Asset (+) | 100,000.00 | - |
| VAT Input Tax (16%) | Asset (+) | 16,000.00 | - |
| Accounts Payable (Supplier) | Liability (+) | - | 116,000.00 |
💡 Accountant's Note
VAT on material and subcontractor purchases is a recoverable input tax. It is not part of the material cost — it is a separate asset offset against the VAT collected on billings.
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