Expenses for Construction

You can deduct input VAT paid on expenses incurred on construction if the following conditions are met:

• Expenses are incurred during the initial stages of construction (before project is completed or payments received)
• Expenses are part of the taxable supplies done by a taxable person

You cannot deduct input VAT on expenses under the following conditions:

• Expenses are not part of the economic activities of the business
• Entertainment, certain motor vehicle expenses