What VAT is deductible?

When computing your VAT liability, you are entitled to deduct:

(a) purchases VAT that has been charged to you in the VAT period on proper VAT invoices, and

(b) VAT paid by you to Customs on goods imported from outside the EU.

You are not allowed to deduct:

(a) VAT on food, drink, accommodation, or personal services provided to you, your agents or employees, or which is comprised in advertising expenditure incurred by you,

(b) VAT on entertainment expenses incurred by you, your agents or employees,

(c) VAT on the purchase, hire, Intra-Community Acquisition, or importation of a passenger motor vehicle,

(d) VAT on the purchase, Intra-Community Acquisition, or importation of petrol.