SCHEDULES
SCHEDULE 18Serial tax avoidance
PART 2Entry into the regime and basic concepts
Meaning of “non-deductible tax”
6
1
In this Schedule “non-deductible tax”, in relation to a taxable person, means—
a
input tax for which the person is not entitled to credit under section 25 of VATA 1994, and
b
any VAT incurred by the person which is not input tax and in respect of which the person is not entitled to a refund from the Commissioners by virtue of any provision of VATA 1994.
2
For the purposes of sub-paragraph (1)(b), the VAT “incurred” by a taxable person is—
a
VAT on the supply to the person of any goods or services,
b
VAT on the acquisition by the person from another member State of any goods, and
c
VAT paid or payable by the person on the importation of any goods from a place outside the member States.