Input tax ― blocked input tax

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Value Added Tax

Guidance

This guidance note looks at the circumstances in which input tax is specifically blocked and cannot be recovered.

For an overview of input tax more broadly, see the Input tax ― overview guidance note.

For in-depth commentary on the legislation and case law in this area, see De Voil Indirect Tax Service V3.440.

Basics of blocked input tax

Blocked input tax refers to input tax which cannot be recovered despite meeting all of the other normal conditions for input tax recovery (see the Input tax ― conditions for recovering VAT guidance note for discussion of these conditions).

VAT legislation sets out that input tax cannot be recovered of certain kinds of expenditure. Legislation also blocks VAT recovery when a business operates certain special schemes.

Categories of blocked input tax

The table below sets out they

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