{
  "url": "https://openlegislation.uk/value-added-tax-input-tax-order-1992/schedule-2/paragraph-2",
  "json_url": "https://openlegislation.uk/value-added-tax-input-tax-order-1992/schedule-2/paragraph-2.json",
  "legislation": "uksi/1992/3222",
  "legislation_title": "The Value Added Tax (Input Tax) Order 1992",
  "legislation_url": "https://openlegislation.uk/value-added-tax-input-tax-order-1992",
  "path": "schedule/2/paragraph/2",
  "kind": "paragraph",
  "number": "2",
  "heading": null,
  "text": "(1) NI acquisition VAT charged on the acquisition in Northern Ireland of goods from a member State by a taxable person is excluded from any credit under section 25 of the Act, where the goods are used or are to be used by the taxable person for the purposes of business entertainment unless the entertainment is provided for an overseas customer of the taxable person and is of a kind and on a scale which is reasonable, having regard to all the circumstances.\n(2) For the purposes of this paragraph, “business entertainment” means entertainment including hospitality of any kind provided by a taxable person in connection with a business carried on by that person, but does not include the provision of any such entertainment for either or both—\n(a) employees of the taxable person; and\n(b) if the taxable person is a body corporate, its directors or persons otherwise engaged in its management.\n(3) But the exception in relation to the provision of entertainment for persons such as are mentioned in sub-paragraph (2)(a) and (b) does not apply where the provision of the entertainment is incidental to its provision for others.\n(4) For the purposes of this paragraph, “overseas customer”, in relation to a taxable person, means—\n(a) any person who is not ordinarily resident nor carrying on a business in the United Kingdom or the Isle of Man and avails himself or herself, or may be expected to avail himself or herself, in the course of a business carried on by that person outside the United Kingdom and the Isle of Man, of any goods or services the supply of which forms part of the taxable person's business; and\n(b) any person who is not ordinarily resident in the United Kingdom or the Isle of Man and is acting, in relation to such goods or services, on behalf of an overseas customer as defined in paragraph (a) or on behalf of any government or public authority outside the United Kingdom and the Isle of Man.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 2 inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments, Northern Ireland Protocol and Savings and Transitional Provisions) (EU Exit) Regulations 2020 (S.I. 2020/1545), regs. 1, 24 (with regs. 109-131); S.I. 2020/1641, reg. 2, Sch."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1992/3222/schedule/2/paragraph/2",
    "retrieved_at": "2026-10-29T14:08:28.064368+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}