Commentary

V4.113I Supplies in relation to land excluded from exemption—parking

Part V4 Exemption, zero-rating and reduced rates

V4.113I Supplies in relation to land excluded from exemption—parking

V4.113I Supplies in relation to land excluded from exemption—parking

Under UK legislation, the granting of facilities for parking a vehicle is excluded from exemption1. Directive 2006/112/EC, art 135(2)(b)2 provides a mandatory exclusion from exemption in respect of 'the letting of premises and sites for parking vehicles'. In this context, the ECJ has held that the expression 'vehicles' includes all means of transport3. However, a letting is not excluded from exemption if it is closely linked to the letting of immovable property which is itself exempt so that the two lettings constitute a single economic transaction, eg where the parking space and immovable property are part of a single complex, or where both properties are let to the tenant by the same landlord4.he exclusion extends to the letting (but not the freehold sale, unless under three years old) of all places designed to be used for parking vehicles and includes garages5.

Facilities are the means or opportunity to do something more easily6. In determining whether facilities fall within the exemption, the proper question to ask is 'whether having regard to the nature of the subjects and the terms of the lease a grant of facilities for parking a vehicle has been made either expressly or by necessary implications' (C & E Comrs v Trinity Factoring Services Ltd [1994] STC 504 at 508). In that case, and also in Wilson7, the lease of garages was held to be excluded from exemption although they were actually used for storage only, rather than for parking.

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