Value Added Tax Consolidation Act 2010 section 60

General limits on deductibility

Section 60 sets out the general limits on the deductibility of VAT, identifying the categories of expenditure on which input tax may not be reclaimed, and providing limited exceptions for qualifying conference accommodation and certain trade-related supplies.

• VAT incurred on food, drink, accommodation, personal services, and entertainment is generally not deductible, even where the expenditure is for business purposes, though exceptions apply for traders who supply such goods or services and for qualifying conference accommodation.
• VAT on the purchase, hiring, or importation of passenger motor vehicles is not deductible unless the vehicle is stock-in-trade, acquired for a vehicle hire business, supplied under a hire purchase arrangement by a finance house, or used for driving instruction.
• VAT on petrol is not deductible (other than as stock-in-trade), and VAT on contract work that consists of handing over non-deductible goods is likewise blocked.
• Where goods have been purchased under the margin scheme for taxable dealers or auctioneers, the purchaser may not reclaim any VAT element included in the price.