The input tax imposed on capital goods that exceed 1M cannot be claimed entirely during its month of purchase. It has to spread over useful life or 60 months, whichever is shorter.
But what if the associated capital goods were subsequently sold, disposed of, destroyed?
Since JuanTax automates amortization, we needed to provide a way to automate full amortization on the month the capital goods were disposed of.
To update the disposal date of the asset, go to your list of Value Added Tax reports then click the Capital Goods tab. Mark the checkbox of the item that you’re about to dispose of and click the trash icon.
Clicking the trash icon will prompt you to a dialog box, where you need to hit the Yes, Dispose It! button to successfully dispose of your item.
You can also check this blog to read more about the Updated Rule on Amortization of Input VAT on Capital Goods based on TRAIN Law (RR No. 13-2018).