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TAX 2
WRITTEN REPORT
MIXED BUSINESS TRANSACTION
A vat registered person may be engaged in a combination of sales subject to VAT, Zero-
Rated Vat, and VAT EXEMPT Transactions. For Vat purposes, this is known as mixed business
transactions. The main concerned in business transaction is the allocation or apportionment of
input vat.
A Vat registered person who is also engaged in transactions not subject to Vat shall be allowed
of Input tax credit as follows:
Total Input Tax – which can be directly attributed to transactions subject to vat except