This GAZT guideline provides a detailed framework for the Value Added Tax (VAT) treatment of capital assets in the Kingdom of Saudi Arabia. It defines capital assets, clarifies the rules for initial input VAT deduction, and outlines the mandatory adjustment mechanism for changes in taxable use. The guide explains adjustment periods (6 years for movable/intangible assets, 10 for immovable) and the annual calculation process. It primarily elaborates on the application of Article 52 of the VAT Implementing Regulations, covering permanent adjustments for sales, nominal supplies upon disposal, and special rules for deducting VAT on assets held upon registration.