VIT25200 - Is it input tax: mixed use of goods

A business that incurs tax on goods (including any interest in land) it intends to use for both:

• business purposes; and
• non-business or private purposes

has a choice as to how to treat those goods for VAT purposes. A business might:

• leave the goods wholly outside the business and treat them as wholly private or non-business assets (see VIT25220); or
• bring the goods partly within the business and apportion the tax incurred on them (see VIT25240); or
• apportion the tax incurred on capital items of immoveable property (including construction services), ships, boats and other vessels, and aircraft (see VIT25260); or
• treat certain types of goods as wholly business using the Lennartz mechanism (see VIT25280).