Are there ways to reduce VAT?
Updated 2026-09-19
- Include 5% in your pricing. VAT is collected on the government's behalf: if cost is 70 and you want to earn 30, the target sales amount is 100, so sell at 105; after tax you keep the full 100.
- Collect deductible inputs diligently. Expense invoices with the company tax ID that are not consumption in nature can offset VAT; remember to ask suppliers for invoices with your tax ID.
- Use the e-invoice input summary (consent to proxy printing). This avoids missing deductions by forgetting to provide e-invoice certificates.
- File and pay on time. Surcharges and fines are the least worthwhile expense.