Council owes VAT for parking overpayments

An East Anglian council has lost an appeal over how it treats VAT on charges drivers for parking.

Off-street car park terminals provided by the Borough Council of King’s Lynn and West Norfolk do not give change if customers overpay for a tariff.

As a result, this means that some drivers who do not have the right coins to hand pay more to park than the prescribed charges. The council argued these overpayments were not taxable because customers could contact it to recover the overspend.

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