Definition: Net recording of VAT
Under this system:
a. Outputs of goods and services are valued excluding invoiced VAT; imports are similarly valued excluding invoiced VAT;
b. Purchases of goods and services are recorded including non-deductible VAT.
Under this system, VAT is recorded as being payable by purchasers, not sellers, and then only by those purchasers who are not able to deduct it (§ 6.61).
European Commission (Eurostat), International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), United Nations (Statistics Division), World Bank, "System of National Accounts 2008", United Nations, New York, 2009