Level playing field?

KEY POINTS

• VAT liability of car parking charges varies according to the provider.
• Four categories of organisations that serve the public.
• VAT recovery rates are not the same for all public bodies.
• The regime should be reviewed to level the field.

Advisers who work in VAT know it is far from a simple tax and people who work in the public sector know that these are not simple organisations. When the two come together they create one of the most complex areas of tax in the UK.

Consider the VAT liability of parking charges. These are an everyday item but apart from registered traders few people are likely to have considered the VAT implications. It is a complex area where there has been litigation.

Parking provided by public sector organisations falls...