A tax piece of reference is the tax incentive which provides certain taxpayers to subtract the amount of the unit of acknowledgment they throw accrued from the statement they owe the state. It may also be a credit granted in recognition of taxes already paid or a pull in of state "discount" applied incases. Another way to think of a tax credit is as a rebate.
Resellers or producers of goods or providers of services collectively, providers mustvalue added tax VAT in some jurisdictions upon billing or being paid by customers. Where these providers ownership goods or services introduced by others, they may do paid VAT to other providers. most VAT systems allow the amount of such VAT paid or considered paid to be used to offset VAT payments due, generally mentioned to as an input credit. Some systems allow the excess of input credits over VAT obligations to be refunded after a period of time.