Now, the difference between the output VAT, which NWSC collected from Company X and the input VAT that it paid on its inputs, represents the VAT liability of the producer (NWSC) and must be remitted to the tax authority.  Similarly, after Company X has used NWSC water to produce ‘value-added’ juices and mineral water, the input tax it paid to NWSC when buying the piped water will be deducted from the output VAT paid by VAT-registered businesses that buy juice and mineral water from Company X to sell to the final consumers and remit the difference to URA. 