Question 1

What is input VAT and how does it reduce my tax bill?

Accepted Answer

Input VAT is the VAT you pay on business purchases (expenses). As a VAT-registered business, you can deduct input VAT from the output VAT you collect on sales. The difference (net VAT) is what you owe to or can reclaim from tax authorities. This tracker calculates that automatically per quarter.

Question 2

Which expenses qualify for VAT recovery?

Accepted Answer

Generally, any expense incurred for legitimate business purposes qualifies for VAT recovery, including software subscriptions, office supplies, professional services, travel, and marketing costs. The expense must include a valid VAT invoice from the supplier. Personal expenses and some exempt categories (like certain financial services) are not recoverable.

Question 3

How does the Net VAT calculation work?

Accepted Answer

The Net VAT is calculated as Output VAT (from your invoices) minus Input VAT (from your expenses). A positive number means you owe VAT to tax authorities. A negative number means you have overpaid and can request a refund or credit. This tool pulls output VAT data from your Invoice History automatically.

Question 4

Is my expense data stored securely?

Accepted Answer

All expense data is stored locally in your browser using localStorage. Nothing is uploaded to any server unless you explicitly use the Cloud Backup feature. Your financial data never leaves your device by default. Pro users can optionally sync data across devices via encrypted cloud backup.

Expense & VAT Recovery Tracker

Net VAT Summary — 2026 Q1

Quarterly Expense Summary

Frequently Asked Questions