- The European Court of Justice (EuGH) issued a ruling on January 20, 2022, regarding the treatment of parking management contracts for value-added tax (VAT).
- The EuGH determined that control fees charged by private parking companies for non-compliance with parking terms and conditions are considered consideration for a service and are subject to VAT.
- The ruling states that a legal relationship is formed between the parking area manager and the driver when parking on a specific parking lot, and both parties have rights and obligations under the general terms and conditions.
- The fees received by the service provider are considered the actual value for the service provided to the recipient.
- The ruling has implications for the VAT treatment of parking management contracts.
Source: bundesfinanzministerium.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
