Limitations on input tax credits

(1) In this section“entertainment” means the provision of food, beverages, tobacco, amusement, recreation, or hospitality of any kind, including gambling; “passenger vehicle” means a road or off-road vehicle designed or adapted for the transport of 9 or fewer seated passengers; and “vehicles to be used in the agricultural sector” means tractors, towheads, forklifts, platform trucks and other similar vehicles. 53 (2) Notwithstanding any other provision of this Act, no entitlement to an input tax credit shall arise for a person in relation to a taxable acquisition or import by the person to the extent that– (a) the acquisition or import is not made in the course or furtherance and for the purposes of the person’s business; (b) the acquisition or import is of a passenger vehicle, of spare parts for such vehicle, or of repairs and maintenance services for such vehicle, unless the person’s business involves dealing in or hiring out such vehicles and the vehicle was acquired for that purpose or the vehicle is of a kind for use in the agricultural sector; (c) the acquisition or import is used to provide entertainment, to the extent of such use, unless the person’s business involves providing entertainment and the entertainment was provided in the ordinary course of that business and was not supplied to a related person or employee; (d) the acquisition is of a membership or entry fee for any person in a club, association, or society of a sporting, social, or recreational nature; or (e) the acquisition or import is otherwise of a private or domestic nature. (2A) Subject to sub-section (3), input tax credit shall only be allowed for the tax period which gives rise to the input tax credit. (3) If, at the time a taxable person submits a GST return for a tax period in which an input tax credit would otherwise be allowable for an acquisition or importation, the person does not 54 hold the documentation referred to in sub-section (4), the input tax credit is not allowed in that tax period but is instead allowed in the first period in which the person holds the documentation required, provided that tax period occurs within the subsequent (4) The documentation required for the purposes of sub- section (3) is– (a) in the case of a taxable acquisition, the tax invoice issued by the supplier for the supply, except where the supply was a low value supply for which the supplier was not required to issue a tax invoice; (b) in the case of a taxable importation, a bill of entry or other document prescribed under the Customs and Excise Duties Act for the (c) in the case of an input tax credit allowed under section 37(8), because of an adjustment for an acquisition, the debit note issued by the supplier in respect of that event; or (d) in the case of an input tax credit allowed under section 37(5), because of an adjustment for a supply, a copy of the credit note issued to the recipient of the supply in respect of that event.