Fleet News

Councils must charge VAT for car parking

A legal bid to avoid charging VAT at council-run car parks has run into trouble, with the European Court of Justice (ECJ) ruling that tax authorities were right to block the move.

Councils had previously charged VAT on parking but argued that a 2000 ECJ case removed this obligation.

However, the ECJ now says UK courts should decide the question in principle, which will be a disappointment for Isle of Wight council, Mid-Suffolk district council, South Tyneside metropolitan borough council, and West Berkshire district council, who were fighting HM Revenue & Customs in a bid to allow them not to charge VAT to motorists using their car parks.

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