Dáil Éireann Debate, Thursday - 23 January 2014
51. Deputy Michael McCarthy asked the Minister for Finance the reason off-street parking when provided by local authorities or county councils is taxable at the standard rate, while on-street parking charges are deemed exempt from VAT; and if he will make a statement on the matter. [3314/14]
View answerLocal authorities engaged in the provision of off-street parking are treated for VAT purposes in the same way as other commercial entities providing a similar service of parking. The service is liable to VAT at the 23% standard rate. However, the provision of on-street parking is considered an activity engaged in by a local authority in exercise of a particular right or power conferred on the local authority by an enactment. Since local authorities are the only bodies that have this right or power in relation to on-street parking, that activity or transaction is outside the scope of VAT, since there is no distortion of competition.
