— Determination of tax liability — Scope — Section 7 is not a charging provision but rather a beneficial one, introduced to ease the burden of sales tax on suppliers of taxable supplies/goods — To facilitate suppliers, the legislature, through section 7, has provided for the adjustment of input tax against the output tax payable at the time of making the supply of value-added goods — This process continues at each stage of the supply chain until the final product is sold to the end consumer, who ultimately bears the entire burden of the sales tax. [2025 SCLR 1 = 2025 SCMR 1 = 2024 SCR 380]

— Determination of tax liability — Scope — There is no express requirement that the raw material, for which input tax is paid, must be actually used during the same tax period to qualify for adjustment — Denying such adjustment solely because the raw material has not been consumed during the same tax period contradicts the legislative intent. [2025 SCLR 1 = 2025 SCMR 1 = 2024 SCR 380]

— Tax credit not allowed — Scope — Section 8 only prohibits the claim, credit or deduction of input tax on input/raw materials that were either never intended for use in making taxable supplies or were actually used for purposes other than making taxable supplies by a registered person. [2025 SCLR 1 = 2025 SCMR 1 = 2024 SCR 380]

— Tax credit not allowed — Scope — The loss of input/raw materials through fire does not fall within the scope of “used or to be used for any purpose other than for taxable supplies made or to be made”, as stipulated in section 8 — Loss of goods due to damage does not equate to “use”. [2025 SCLR 1 = 2025 SCMR 1 = 2024 SCR 380]