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A Treasury Order stops input tax from being claimed on some costs. »Ê¹ÚÌåÓýappse blocking orders apply even when the VAT meets the definitions and requirements of input tax.

»Ê¹ÚÌåÓýapp Value Added Tax (Input Tax) Order 1992 (Statutory Instrument 1992/3222) restricts input tax on the following categories of goods and services:

• goods to be sold under the margin scheme for second hand goods;
• goods or services to be used for the purpose of business entertainment;
• the following items when installed in a zero-rated sale or long lease in buildings:

• finished or prefabricated furniture, other than furniture designed to be fitted in kitchens;
• materials for the construction of fitted furniture, other than kitchen furniture;
• domestic electrical or gas appliances, other than those designed to provide space heating or water heating or both;
• carpets or carpeting materials;

• cars - unless purchased for one of the qualifying uses specified in the order.

»Ê¹ÚÌåÓýapp Input Tax Order also applies to goods that are not building materials. For further information please see VCONST.

Article 12 of the TOMS Order (SI 1987/1806) disallows input tax on goods or services acquired for re-supply as part of package falling within the Tour Operators Margin Scheme. 

»Ê¹ÚÌåÓýapp expense of providing accommodation for company directors is not a cost incurred for business purposes. »Ê¹ÚÌåÓýapp VAT incurred does not meet the criteria of input tax and does not require a blocking order to stop deduction. See section 24(3) of the VAT Act 1994 at VIT11500.