VAT & Parking: What You Need To Know

We’re all familiar with the term VAT. It’s something we pay on our purchases every day, from groceries to clothes. But what about parking? It might not be something that you’ve considered before but in some cases, VAT is added to parking charges depending on where you park your vehicle.

In this article, we will look at where VAT applies in different parking spaces as well as PCNs (Penalty Charge Notices).

VAT treatment of parking facilities

When it comes to VAT and parking, it can get a little complicated. One of the main reasons that you would want to know if there is VAT applied when you have paid to park, is that you parked for work purposes, are claiming expenses and your employer wants to know if they can claim back the VAT.

The treatment of VAT of parking facilities really depends on exactly where you have parked. For example – on-street, off-street, or on private land. Don’t worry, we’re going to look at what the differences are below.

Car parking VAT

On-street parking 

On-street parking is managed by the Local Authority and covered by statute. This means that there is no VAT applied to on-street parking charges.

Off-street parking

Off-street parking is different and it is likely that VAT is added. In terms of claiming back the VAT from a motorist’s point of view, you will know if the off-street parking area has applied VAT by looking at your parking ticket/receipt. If there is a VAT number on this, then you can claim back the VAT.

Parking in a country park 

When parking in a country park, VAT on the parking charges will depend on the land owner and/or operator of the car park. Often this is private land and some may offer free parking, require a disc to be displayed, or require payment to park. If you pay to park, as with off-street parking, you should find a VAT number of the ticket/receipt. Make sure that you always check the signage in the car park to avoid a fine.  

Penalty charge notices

According to gov.uk PCNs (Penalty Charge Notices) are “outside the scope of VAT.” To avoid any unwanted additional charges, make sure that you always keep a note of when your parking runs out. Many apps that are used to pay for parking now have the option to receive a text message when your parking is coming to an end. 

Wherever you park it’s important to take note of the time you park and read any signage. Not only will you make sure your vehicle is going to be safe when parked, but you will also avoid any unwanted penalty charges.

Would you like to brush up on your driving skills or improve your confidence? Totally Driving is here to help. Contact us to find out more about our popular refresher driving course. Find out more.