VAT & SD Act 2012
Section 2 Clause 18A - Inputs
(as updated till Finance Ordinance 2025)
1[ “inputs” means all types of raw-materials, laboratory reagent, laboratory equipment, laboratory accessories, any substance used as fuel, packaging material, service, machinery and parts; but the following goods and services shall not be considered as inputs, namely:-
(a) labour, land, building, office equipment and fixture, construction, balancing, modernization, replacement, expansion, repair and renovation of any building or structure or establishment;
(b) purchase and repair of all types of furniture, office supplies, stationary, refrigerator and freezer, air conditioner, fan, lightings equipment and generator;
(c) Interior design, architectural plan and drawing;
2[ (d) Purchase, rent or lease of vehicles; ]
(e) Travel, entertainment, staff welfare, development works and goods and services related thereof;
(f) rent of premises, offices, show-rooms or similar places by whatever name may be called, business establishments;
3[ Provided that, goods or services imported, purchased, acquired or otherwise collected for the purpose of sale, exchange or transfer in the case of conducting of business by a trader mentioned in paragraph (3) of the Third Schedule of this Act shall be deemed to be “inputs”; ] ]
1 Clause (18a) was inserted by section 54(2) of the Finance Act, 2020 (Act No. 09 of 2020), with effect from 1 July 2020.
2 Clause 18A(d) was substituted by section 15(a) of the Finance Act, 2023 (Act No. 14 of 2023), with effect from 1 July 2023.
3 Proviso of clause (18A)(f) was substituted by section 56(a) of the Finance Act, 2022 (Act No. 13 of 2022) with effect from 1 July 2022.
Disclaimer: This is the authentic English text of The Value Added Tax and Supplementary Duty Act 2012, as published under SRO No. 440-Law/2025/326-Mushak dated 05 November 2025. In the event of any inconsistency or conflict between the content on this website and the official Government publications or gazette notifications relating to laws, rules, regulations or SROs, the official Government publications and notifications shall prevail.