Commentary

BB/4B/06 VAT—off-street car parking provided by local authorities

Part V16 Forms and other HMRC material

BB/4B/06 VAT—off-street car parking provided by local authorities

BB/4B/06 VAT—off-street car parking provided by local authorities

Business Brief, Issue 4. 24 March 2006

The VAT and Duties Tribunal has decided that the Isle of Wight Council and three other local authorities do not have to charge VAT on car parking in their areas. This Business Brief article explains action that HM Revenue and Customs (HMRC) will be taking pending an appeal.

Background

Under art 4(5) of the EC Sixth VAT Directive, activities of public bodies are not regarded as being carried on by way of business for VAT purposes, if they do so under a statutory regime that is unique to the public sector (“special legal regime”), unless this would significantly distort

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