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National Car Parks v CRC, Upper Tribunal (Tax and Chancery Chamber), 16 June 2017
VAT due on overpayments of car parking fees
National Car Parks (NCP) operated pay-and-display car parks. In October 2014 it claimed a repayment of overpaid VAT of £488 669 relating to overpayments of car parking charges by customers. HMRC refused the claim on the ground that the overpayments represented consideration for the right to park.
The First-tier Tribunal dismissed the taxpayer’s appeal.
The Upper Tribunal said consideration for the purposes of VAT did not have the same meaning as it did for English contract law. There was therefore no need to analyse the supplies using English contract law concepts of offer and acceptance or consideration. It followed that what was shown on the machine or written on the ticket was of limited relevance.
The judge said the meaning of consideration for VAT was clear from Dutch Potato (Case C-154/80) and Campsa (Case C-285/10). It was ‘the value actually given by the customer (or...
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