Car Parking VAT, Partial Exemption

Forum Categories › VAT ON PROPERTY TRANSACTIONS › Car Parking VAT, Partial Exemption

  • This topic is empty.
Log In Register Lost Password
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • 26 July 2018 at 15:32 #55504
    Chapman
    Member

    Would appreciate some expert advice on VAT (Partial Exemption) please, for a brief description see below:-

    A Property Developer, which is VAT registered as Partially Exempt, is refurbishing a Car Park on its estate – which is located behind several properties & serves the general public. The properties that are in the closest vicinity of the Car park are a mix of Commercial/Residential buildings & also a mix of Opted to tax properties/non opted to tax properties.

    To date the developer has been processing the input tax from the contractor & associated professional fees into its residual input tax & reclaiming a portion (based on the partial exemption % mix) of the input tax, however this has been questioned lately within the office & challenged as to whether this is the correct approach. The challengers thoughts are that since Car Parking is a service & standard rated, that the development of the Car Park should also be standard rated & hence 100% of the input tax be reclaimable

    Can I have your thoughts please.

    Many Thanks in advance

    18 September 2018 at 20:16 #55868
    vatconsultant
    Member

    VAT rules provide that a supply of car parking, either by way of sale or rent, and whether of a garage or parking space, is standard rated. … The sale (or long lease) on new domestic property where the car parking is ancillary is zero rated.

  • Author
    Posts
Log In Register Lost Password
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.