Local authorities are not required to pay VAT on the revenue they receive from parking charges. According to the court, this creates unfair competition with commercial operators who are required to pay VAT and therefore often charge higher rates. Local authorities describe the parking service as a public service, but the court has ruled that this is not justified. If local authorities are indeed required to pay VAT, possibly even with retroactive effect, this could result in an additional tax liability of 300 million. Logically, it is expected that once local authorities are definitively required to pay tax, on-street parking rates will rise significantly. The final ruling on this case is still some way off. The case is expected to be heard by the Supreme Court in the spring of 2017, which will deliver the final judgement.
Why not park outside, but in a garage instead?
Parking outdoors is by no means always cheaper than parking in a multi-storey car park. What’s more, there are other drawbacks to outdoor parking, which is why many people prefer to make use of the many facilities offered by a multi-storey car park.
- Parking in a car park is safer. The car is parked in an area where there are no other road users, so the risk of damage is much lower. Furthermore, many multi-storey car parks (including the Heuvelpoort car park) are secured. This is not the case for most outdoor parking spaces.
- Parking in a multi-storey car park offers greater flexibility, as there is usually no time limit. Many outdoor parking spaces are only available for a few hours at most. Enforcement is particularly strict in city centres. This means you have to keep a close eye on the time to avoid a fine.
- Multi-storey car parks are often strategically located. Take the Heuvelpoort multi-storey car park, for example, which is situated in the heart of Tilburg. Instead of driving round and round a residential area in the hope of finding a free space, you simply drive in and find yourself right in the heart of the city centre. It couldn’t be easier!