Commentary

BB/18B/04 VAT—off-street car parking provided by local authorities

Part V16 Forms and other HMRC material

BB/18B/04 VAT—off-street car parking provided by local authorities

BB/18B/04 VAT—off-street car parking provided by local authorities

Business Brief, Issue 18. 13 July 2004

In a preliminary decision, the VAT and Duties Tribunal has found in favour of the Isle of Wight Council (LON/00/653) ruling that the Council is not in business when it provides off-street car parking spaces in return for payment. The Tribunal was also of the opinion that the Commissioners are unable to argue that to treat off-street car parking as non-business would distort competition. This is because, the Tribunal said, the UK has failed to properly implement art 4(5) of the Sixth Directive (77/388/EEC). This Business Brief explains Customs' position following that decision.

Background

Article 4(5) of the Sixth Directive provides that local government bodies do not act in a business capacity when they engage in activities regulated by statute, provided that this does not

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