There are a number of categories of supply (or importation) where the VAT incurred is non-recoverable. This commentary considers two of the most common categories.

Blocked input tax

Certain input tax is specifically treated as non-recoverable in the legislation. This irrecoverable or ‘blocked’ input tax is as follows.

(1)Purchase of a motor car for use in the business, unless:

(a)the person to whom it is supplied intends to use it primarily:

(i)to let with a driver, as passenger transport (e.g. as a taxi);

(ii)to provide as ‘self-drive hire’; or

(iii)to provide driving instruction;

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