Capital Goods Scheme (CGS)
CGS is a mechanism for regulating the amount of Value-Added Tax (VAT) reclaimed over the VAT-life (adjustment period) of a capital good. For VAT purposes a capital good is a developed property.
The scheme operates by ensuring that the VAT reclaimed reflects the use to which the property is put over its VAT-life.
For detailed information regarding the Capital Goods Scheme and its application, please see further guidance.