CGS Overview
How It Works
In year 1, you recover VAT based on your taxable use %. Each subsequent year, you compare the actual taxable use % to the original claim. If usage has changed by more than 10%, you adjust — paying back or recovering additional input tax for that year's slice.
Disposal
If you sell a capital asset during the adjustment period, you make a final one-off adjustment. If the sale is taxable, you're treated as if you used the asset 100% for taxable purposes for remaining years. If exempt — 0% recovery for remaining years.