In Borough Council of King's Lynn and West Norfolk (No. 2) v HMRC [2021] UKFTT 10 (TC) (18 January 2021) the First-tier Tribunal concluded that ‘overpayments’ at a public authority pay and display off-street car park represented further consideration for a supply of parking and were therefore subject to VAT.
The council operated pay and display off-street car parks with coin-operated ticket machines which did not provide change. So for example a person wishing to park for an hour may be required to pay a tariff of £1.40 but would in fact pay £1.50 because they only had a one pound coin and a 50 pence piece. They would therefore have ‘overpaid’ by 10p. It was the VAT status of this overpayment which was in dispute.
By way of important background it was not the first time the issue had arisen at tribunal. In 2012 ...
