If capital items are put to private business purposes this is treated as a deemed supply of services. As a result, not all of the input VAT incurred on the purchase of the capital item is recoverable and needs to be adjusted. The taxable amount is determined proportionately for each tax period, taking into account a five-year apportionment period (20 years for real estate) as of the date input VAT was deducted
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Web page updated on 17 Mar 2025 16:33