An accountable person may not deduct VAT on any of the following, even when the goods and services in question are acquired or used for the purposes of a taxable business:
- expenditure incurred by them on food or drink, or other personal services for themselves, their agents or employees, except to the extent, if any, that such expenditure is incurred in relation to a supply of services in respect of which they are accountable for tax
- expenditure incurred on accommodation other than qualifying accommodation in connection with attendance at a qualifying conference as defined in the legislation
- expenditure incurred by the accountable person on food or drink, or accommodation or other entertainment services, where such expenditure forms all or part of the cost of providing an advertising service in respect of which tax is due and payable by the accountable person
- entertainment expenses incurred by the accountable person, their agents or employees
- the purchase, hiring, intra-Community acquisition or importation of passenger motor vehicles other than certain qualifying motor vehicles (and 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, or for the purpose of a business of the hiring of motor vehicles, or for use in a driving school business)
- the purchase, intra-Community acquisition or importation of petrol otherwise than as stock-in-trade
- contract work involving the handing over of goods when such goods are themselves not deductible
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