Business can reduce the payment of VAT

The business can reduce the payment of VAT due to the tax
authorities by the amount of VAT charged to it by its suppliers
on business expenditures (note: certain employee expenditures
may not qualify) to the extent that the business generates sales
subject to VAT or equivalent sales .

However, in order to deduct input VAT in this manner, the business must
be in possession of valid VAT invoices from its suppliers and
must either have paid the suppliers or actually received the
goods or services from the suppliers. Beside other invoice
requirements, all invoices must show either the tax registration
number or the VAT ID number of the taxable person who supplied
the goods or services.

Otherwise, without a valid invoice the
invoice recipient is unable to deduct the related input VAT. Under
certain circumstances, businesses are permitted to issue VAT
invoices to themselves on behalf of their suppliers (self-billing).