The legal case that challenged the VAT on ticket income
Costas Constantino of VCS was delighted with the outcome of case stating, "We have always insisted that parking charges levied were outside the scope of vat."
The issue on this appeal is whether Vehicle Control Services Ltd ("VCS") is liable to pay VAT on parking penalty charges. If those charges are consideration for a supply of goods or services, they will be subject to VAT. If, on the other hand, they are damages they will not be. Both the First Tier Tribunal ("the FTT") and the Upper Tribunal ("the UT") found against VCS. They held that the charges were consideration for a supply of services, and hence were subject to VAT. According to the FTT the services in question were the provision of parking to motorists, and the payments represented consideration paid by the motorists. However, according to the UT, the services in question were services of parking control that VCS supplied to car park owners; and the parking penalty charges formed part of VCS"s remuneration. The decision of the UT is at  UKUT 130 (TCC);  STC 2065.
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