Meaning of “non-deductible tax”

2A

1

In this Schedule “non-deductible tax”, in relation to a taxable person, means—

a

input tax for which he is not entitled to credit under section 25, and

b

any VAT incurred by him which is not input tax and in respect of which he is not entitled to a refund from the Commissioners by virtue of any provision of this Act.

2

For the purposes of sub-paragraph (1)(b), the VAT “incurred” by a taxable person is—

a

VAT on the supply to him of any goods or services,

b

VAT on the acquisition by him from another member State of any goods, and

c

VAT paid or payable by him on the importation of any goods from a place outside the member States.