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The need for a capital goods scheme under VAT
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Dr Robert brederode -
As a consequence of the distinction in value-added tax (VAT) between taxable and exempt supplies, a problem arises when the use of capital assets fluctuates over time.
Contrary to the general practice for income tax, capital inputs are expensed under a VAT to ensure neutrality as regards the choice between capital and labour or investment and consumption.
That would mean that the initial use of a capital good, exempt or taxable, would determine whether and to what extent the VAT paid on the purchase of the good is recoverable. ....

Crowe Horwath International , Horwath Mak Ghazali , காகம் ஹார்வத் சர்வதேச ,