Airport Parking VAT

[TEKNOPUG]

Can I reclaim VAT on Airport Parking?

It's not local authority parking, neither is it air travel. I can't find an up to date, definitive answer.

[Sheepshanks]

Why wouldn't you be able to claim it? Assuming it's been charged, which it is in my experience.

[TEKNOPUG]

I have received an email from my accountants telling me that I can't reclaim "travel".

It's not an airfare though, it's parking at an airport.

[Mandat]

Are you parking because of a business trip or holiday?

I would have thought if it is part of a business trip, then the expense should be allowed.

[Eric Mc]

You can reclaim VAT on parking if -

i) there is VAT charged on the parking fee

ii) the parking ticket shows the car park operator's VAT number

iii) the parking cost was incurred wholly and exclusively for the purpose of the trade

iv) you are or operate a VAT registered business

[Countdown]

TEKNOPUG said:

I have received an email from my accountants telling me that I can't reclaim "travel".

It's not an airfare though, it's parking at an airport.

Why can't you reclaim VAT on the airfare (assuming it's not zero rated)?

Eric's listed the main VAT rules above. Assuming you're VAT registered and your business makes standard or zero rated supplies then you can reclaim your input VAT, which covers airfare and parking.

[Sheepshanks]

Countdown said:

Why can't you reclaim VAT on the airfare (assuming it's not zero rated)?

It is zero rated.

[Countdown]

Sheepshanks said:

It is zero rated.

Ok. So there’s no VAT to reclaim. It still doesn’t explain the OP’s Accountants advice that VAT on “travel” can’t be reclaimed. Unless that travel related to exempt supplies made by the OP...?

[Eric Mc]

Most travel costs are zero rated for VAT purposes (such as air fares, train fares and bus fares).

However, SOME fares may be standard rated (20% VAT) so you do need to be aware as to whether the fare does or doesn't have a VAT element included in it.

By and large, all public transport fares are Zero rated.