Article 50 - Goods and services deemed to be received outside of Economic Activity

1. Expenditure relating to the following Goods or services is not considered to be incurred by the Taxable Person in the course of carrying on his Economic Activity, and consequently the Taxable Person will not be permitted to deduct the Input Tax relating to such expenditure, save where the Goods or services are to be directly supplied onwards as a Taxable Supply by the Taxable Person:

(a) Any form of entertainment, sporting or cultural services,

(b) catering services in hotels, restaurants and similar venues,

(c) the purchase or lease of Restricted Motor Vehicles, as defined in the second paragraph of this article,

(d) repair, alteration, maintenance or similar services on Restricted Motor Vehicles,

(e) fuel used in Restricted Motor Vehicles,

(f) any other Goods and services used for a private or non-business purpose.

2. A Restricted Motor Vehicle is any vehicle designed to be used on the road unless the vehicle is either:

a) used exclusively by the Taxable Person or by its employees for work purposes, without being made available for any private use,

b) primarily intended for resale by the Taxable Person or otherwise for use in an Economic Activity supplying that vehicle.

3. In cases where a Restricted Motor Vehicle is treated under the first paragraph of this article as not being purchased in the course of an Economic Activity, any Supply of that Restricted Motor Vehicle by the Taxable Person will not be considered to be made in the course of his Economic Activity.

4. Notwithstanding the first paragraph of this article, the purchase of any services listed in that paragraph which are intended for onward sale, without use by that Taxable Person, are considered to be effected in the course of carrying on that Taxable Person’s Economic Activity.