S.L. 406.12 Art. 2Definitions.

(1) For the purposes of these regulations, unless the context otherwise requires -

"the Act" means the Value Added Tax Act;

"capital goods" means all tangible fixed assets, which can be used on a long term basis as working tools or other means used for the carrying on of a an economic acticvity. Small-equipment, working tools and office furniture, where their price, or open market value, is less than one thousand and one hundred and sixty euro (€1,160), as well as packaging materials, even if they can be used more than once, are not within the scope of these regulations;

"immovable property" that is subject to rights in rem is considered to be capital goods in the name of the holder of the right in rem; "input tax on capital goods" means input tax paid on operations related to the realisation, the transformation or the improvement of capital goods referred to above. The following is not considered as input tax on capital goods:

(a) input tax paid on the repair or the maintenance of capital goods as well as the purchase, the intra-Community acquisition or the importation of spare parts used for such operations;

(b) input tax paid for the renting of capital goods, and more generally input tax paid for the giving up or the granting of the use of such goods; "other tangible property" is considered to be capital goods in the name of the person who lets them out or, more generally, the person who gives up or grants their use; "period of reference" means, in the case of capital goods excluding immovable property, a period of five years, and in the case of immovable property, a period of twenty years.

(2) For the purposes of these regulations, a contract of works consisting of a construction contract shall be deemed to be a supply of goods.

(3) Other terms and expressions in these regulations shall have the meaning assigned to them in the Act.