The Capital Goods Scheme (CGS) was introduced as part of the new Irish VAT-on-property regime that took effect on 1 July 2008. Despite the fact that the CGS has been a fundamental component of the VAT-on-property rules for the past 16 years, it continues to cause confusion among practitioners and property owners. The CGS applies where a taxable person has been charged VAT on the acquisition or development of a property. It also applies to owners of transitional properties. A person to whom the CGS applies is referred to as a “capital good owner” in CGS terminology.
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