TaxCorporate TaxCar park VAT battle rages on

Car park VAT battle rages on

High Court to decide outcome of battle between four councils and HMRC over VAT on off-street parking

Councils are set to return to the High Court for the culmination of their
£130m VAT battle with
HM Revenue & Customs
over off-street parking.

The ECJ this week
suggested that the issue should be decided on an ‘activities’ basis rather than
a council-by-council basis.

Four councils ­ the Isle of Wight, Mid-Suffolk, South Tyneside Metropolitan
and West Berkshire ­ appealed to HMRC over the issue, saying they should not pay
VAT as they are public bodies.

HMRC argues that since they compete with private sector car parks, they
should pay VAT to avoid a distortion of competition.

Marc Welby of BDO Stoy
Hayward
said: ‘It’ll impact much more… not so much just car parking, but on
other areas where the activities of the private trader are exempt, whereas a
public body does get a refund of VAT.

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

2m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

2m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson