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Fees for Parking Violations Are Taxable Service, EU Court Says

Jan. 20, 2022, 2:50 PM

Penalty fees charged by parking lot operators are subject to value-added tax since they are supplying a service, the EU’s top court ruled Thursday.

The case involves a dispute between a private operator—Apcoa Parking Danmark A/S—and the Danish tax authority over a denial of a VAT refund related to penalty fees Apcoa had levied between Sept. 1, 2008, and Dec. 31, 2009.

The fees levied by a private company, in this case for motorists who failed to comply with rules to use the car park, must be considered remuneration for a supply of service, the European Court of Justice ...

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