S.L. 406.21 Art. 10Whereassetsofthe economic activity include capital goods. S.L. 406.12 S.L. 406.12   S.L. 406.12   S.L. 406.12

(1) Where the assets of the economic activity of any of the applicants for membership of a VAT Group or for admission to an existing VAT Group include capital goods, as defined in the Value

Added Tax (Adjustments relating to input tax on capital goods) Regulations, in respect of which the period of reference for the purposes of determining the adjustment of the initial deduction referred to in regulation 3 of the said Value Added Tax (Adjustments relating to input tax on capital goods) Regulations has already started to run, the said period of reference shall continue to run subsequent to the date referred to in regulation 5(1)(a) or (3), as the case may be, notwithstanding the cancellation of the said applicant’s individual registration in terms of regulation 9(2).

(2) If any of the events referred to in regulation 4 of the

Value Added Tax (Adjustments relating to input tax on capital goods) Regulations occur in relation to the capital goods referred to in sub-regulation (1) subsequent to the date specified in regulation 5, the Group Reporting Entity shall make any adjustment required to the initial deduction adjustment in the manner prescribed in the said Value Added Tax (Adjustments relating to input tax on capital goods) Regulations.

(3) Where the assets belonging to a person who is a member of a VAT Group include capital goods, as defined in the Value Added

Tax (Adjustments relating to input tax on capital goods) Regulations, in respect of which the period of reference for the purposes of determining the adjustment of the initial deduction referred to in regulation 3 of the said Value Added Tax (Adjustments relating to input tax on capital goods) Regulations started to run or was running whilst that person was a member of the VAT Group, the said period of reference shall continue to run subsequent to the termination of that person’s membership of the VAT Group, or the dissolution and deregistration of the VAT Group, in terms of regulation 12, and the provisions of the Value Added Tax (Adjustments relating to input tax on capital goods) Regulations shall continue to apply in respect of the said capital goods:

Provided that if any of the events referred to in regulation 4 of the Value Added Tax (Adjustments relating to input tax on capital goods) Regulations occur in relation to the capital goods referred to above on or after the termination of that person’s membership of the VAT Group, or the dissolution and deregistration of the VAT Group, as the case may be, that person shall make any adjustment required to the initial deduction adjustment in the manner prescribed in the said Value Added Tax (Adjustments relating to input tax on capital goods) Regulations unless such adjustment has already been made by the Group Reporting Entity.