Capital goods, and services having similar characteristics, are items of capital expenditure that are used by the business for a number of years. If a business uses such goods and services to make both taxable and exempt supplies, it cannot recover all of the input VAT incurred. The input VAT incurred is recovered in the first year based on the business's pro rata partial exemption recovery percentage. However, the business must monitor the continued use over
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 13:23