How is VAT that is not allowed as an input credit analysed e.g. petrol or entertainment? Is it "Exempt" like insurance or simply "Non-Vatable" like Wages, or does it really matter at all?
I can't answer your question precisely other than to say that they are not exempt, or non-Vatable supplies received. The VAT as you do say, remains irrecoverable however.
(I would treat them as non-Vatable - some businesses can claim back VAT expenses on some exempt services received)