Parking enforcement on private land is subject to VAT
The First Tier Tribunal has dismissed an appeal by
Vehicle Control Services Ltd, a company that manages and
provides parking enforcement services in private car parks. The
company argued that its charges imposed on motorists who
contravened the parking regulations were outside the scope of VAT
as being akin to damages for trespass or even, perhaps, as
"fines" like those imposed in relation to on street and
similar parking contraventions. The Tribunal disagreed, finding
that the signage provided in the car parks made it clear that
motorists parking there in contravention of the rules applicable
were entering into a contractual arrangement for which the charges
were (VATable) consideration. Moreover, as a matter of land law,
the company had insufficient interest in the car park itself to
claim damages for trespass, having being granted only the right to
enter the car park to carry out its enforcement function.
Accordingly, (and as indicated by the signage referred to in the
Tribunal decision) the company's charges included VAT. For
further information and to discuss the implications of the case,
please contact Daniel
Smith on 0207 007 0770.
EU Implementing Regulation adopted by the EU Council of
Ministers
As expected, the European Council of Ministers formally adopted
the EU's "Implementing Regulation" at the ECOFIN
meeting on 15 March. The Regulation sets out rules for the
implementation of the EU's Principal VAT Directive and
Intra-Community VAT refund scheme, with the objective of ensuring
better compliance with the objectives of the EU internal market.
Whilst the Regulation comes into force (mostly) on 1 July 2011,
since it clarifies the meaning of the existing EU VAT law, its
provisions will be very influential before that date.
Bingo duty not chargeable on admission charges –
as long as they are clearly disclosed
In its decision in the case of Cosmo Leisure
Limited, the Tribunal has confirmed that, in principle,
charges for admission to Bingo sessions are not subject to Bingo
Duty. However, the Tribunal also confirmed that such charges have
to be separately disclosed, rather than being merely included in
the price charged for a bingo book. For further information, and to
discuss the implications of the decision, please contact Barney Horn on 0121
695 5902.
HMRC on-line systems downtime between 2nd and
6th April
HMRC has announced (by way of an item on the HMRC website that
appeared on 11 March) that its on-line services will be unavailable
from Saturday 2nd April until 06.00 on Wednesday 6th
April to allow for IT upgrades. All services will be affected
including Corporation Tax, Self Assessment, PAYE and VAT. According
to the information on HMRC's website, detailed information on
timings is yet to be confirmed. Businesses planning to use these
systems during this time (perhaps to file on-line VAT returns for
the period to 28 February) will need to make alternative
arrangements, possibly to file the returns on or before
1st April or by doing so on 6th or
7th April. HMRC may not accept that this planned system
downtime would provide a "reasonable excuse" for failing
to file returns in time.
Stay connected to the latest tax issues and strategies with
Deloitte's Dbriefs webcasts
On 6 April 2011 at 12.00 noon, our live Dbriefs webcast series
for tax professionals will cover Customs: A Tax Area
Overlooked? Fernand Rutten and Stacey Winters will discuss the
changing customs landscape and opportunities to improve compliance
and maximise efficiency. To register for this webcast, please click
here. On 13 April 2011, also at 12.00,
the Dbriefs topic is The Future of VAT: Green
Paper. Daniel Lyons, Rony Wuytjens and Rogier Vanhorick will
consider the issues raised in the European Commission's Green
Paper, discuss the potential impact on your business and consider
how you can have your say in shaping the future of the VAT system.
To register for this webcast, please click here. For more information please go to
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Find out more...
If you would like to discuss this further then please speak to your
usual Deloitte contact.
This briefing note reflects the law in force as at 2 February
2011.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.