A registered person shall not deduct input tax under this Act if the tax relates to the acquisition of—

1. passenger cars or mini buses, and the repair and maintenance thereof including spare parts, unless the passenger cars or mini buses are acquired by the registered person exclusively for the purpose of making a taxable supply of that automobile in the ordinary course of a continuous and regular business of selling or dealing in or hiring of passenger cars or mini buses; or
2. entertainment, restaurant and accommodation services unless—
   • the services are provided in the ordinary course of the business carried on by the person to provide the services and the services are not supplied to an associate or employee; or
   • the services are provided while the recipient is away from home for the purposes of the business of the recipient or the recipient’s employer:

Vat act 17(4)