Telecommunications
VAT Input on Network Equipment Purchases
Recovering input VAT paid on locally purchased network equipment and installation services.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Network Equipment (PPE — Excl. VAT) | Asset (+) | 500,000.00 | - |
| VAT Input Tax (Recoverable) | Asset (+) | 80,000.00 | - |
| Accounts Payable (Vendor) | Liability (+) | - | 580,000.00 |
💡 Accountant's Note
VAT on capital equipment purchases is a recoverable input tax — it reduces the net VAT payable to the ISTD and is not capitalized into the asset cost.
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