A taxable person may not deduct VAT incurred on the following expenditure:
- VAT incurred on the purchase of food or drinks other than were sold on as part of taxable activity
- VAT on accommodation costs other than qualifying accommodation in connection with attendance at a qualifying conference as defined in the legislation
- VAT on entertainment expenses
- VAT on the purchase, hiring, intra-Community acquisition or importation of passenger motor vehicles generally other than motor vehicles held as stock-in-trade or for the purposes of the sale of those motor vehicles by a financial institution in the context of a hire-purchase agreement
- VAT on the purchase, intra-Community acquisition or importation of petrol otherwise than as stock-in-trade
