Capital goods scheme
France has implemented the option provided in the Principal VAT Directive to introduce a scheme enabling the amount of input VAT recovered on the acquisition of tangible capital assets to be adjusted over several years.
The scheme applies to assets acquired for use in the business other than for resale. An asset that was acquired but never used in the business and subsequently sold should not, therefore, be included in the scheme.
At the time of acquisition of the asset, the amount of input VAT that can be recovered is based on the partial exemption position of the business
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