Capital Goods Scheme (CGS)

The Capital Goods Scheme (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.

CGS operates by ensuring that the VAT reclaimed reflects the use to which the property is put over its VAT life.

Further guidance contains more detailed information on the VAT treatment of the Capital Goods Scheme and its application.