PARKING AND THE VAT MAN

摘要

Charges for car parking are standard rated, and fines for violations in parking (parking in the wrong place or exceeding one's time) are generally regarded as compensation and therefore outside the scope of VAT. What is the position where a car park operator allows an enforcement company onto the car park to collect such fines, in consideration of the enforcement company keeping the fines? Are the 'fines' therefore consideration for a supply by the enforcement company to the car park owner, or, are the fines still outside the scope of VAT in the hands of the enforcement operator? For the First Tier and Upper Tier Tribunals, in the case of Vehicle Control Services Ltd v HMRC [2013] EWCA Civ 186, this appeared to be a relatively straightforward question.