VAT on Parking

Hello connections,

We’re all familiar with the term VAT. It’s something we pay on our purchases every day, from groceries to laptops. But what about parking? It might not be something that you’ve considered before but in some cases, VAT is added to parking charges depending on where you park your vehicle

Today I am going to share summarise notes on parking relevant for UK VAT.-

1. On street parking ( Parking on highways)- only local authority are authorise for same so it's not subject to VAT.

2. Off street parking - Taxable, even if supplied by local authority.?If there is a VAT number on this, then you can claim back the VAT.

3. Parking in country park - When parking in a country park, VAT on the parking charges will depend on the land owner and/or operator of the car park. May be standard rated or out of scope depending on nature of country park.

4. Penalty charge for illegal parking - Out of VAT.

5. Overpayment of off street parking - Taxable.

In simple terms -

Supplied by non government entity - Always taxable.

Supplied by govt. -

On Street - Not taxable

Off street - Taxable

Country park - Depend on nature.

Also Kindly Note, Many apps that are used to pay for parking now have the option to receive a text message when your parking is coming to an end.?

Wherever you park it’s important to take note of the time you park and read any signage. Not only will you make sure your vehicle is going to be safe when parked, but you will also avoid any unwanted penalty charges. Penalty Charges Notice are outside the scope of VAT.

I hope this will remove your confusion in dealing with parking charges while preparing VAT returns.