The next chapter in the long-running saga of the VAT treatment of off-street parking continued recently in the High Court.
Four local authorities who provided off-street car parking were exempt from accounting for VAT on the income from these facilities.
HMRC claimed that this would lead to distortion as similar privately run facilities were not exempt.
The matter was referred to the European Court of Justice.
The court said that it was for member states to determine whether there would be a risk of distortion of competition and that the issue should be considered by reference to the activity in question rather than by reference to any local market.
The matter was referred back to the UK courts for them to make a decision.
Back in the High Court the issue was whether it or the VAT tribunal should answer the question relating to distortion of...
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