Council cannot claim back VAT

Mid Suffolk: Council loses bid to claim back thousands in VAT from off-street parking

Tuesday, November 13, 2012
10.11 AM

A COUNCIL has lost out on a bid to claim tens of thousands of pounds back from the government’s tax authorities.

Mid Suffolk Council was one of four councils across the country that had challenged HM Revenue and Customs’s claim that it was entitled to VAT on off-street car parking spaces.

The court case was led by the Isle of Wight council, but was backed by West Berkshire, South Tyneside, and Mid Suffolk.

Had the claim been successful, councils across the country would have been able to claim back VAT receipts – some dating back to the introduction of the tax in 2003.

A spokeswoman for Mid Suffolk said there should be no impact on council tax bills because the lawyers had taken the case on the basis of “no win no fee.”

The Isle of Wight council had led the legal action, which was eventually decided at the European Court of Justice.

An appeal to a higher court has not be ruled out – meaning that the case that has been rumbling on since the year 2000 has still not ended.