The Federal Inland Revenue Service issued guidance—Information Circular No. 2021/03—that addresses application of value added tax (VAT) on road tolls, paid parking, access pass, recreational or entertainment parks, admissions to events, and other related services.
The circular provides that toll gates, paid parking, recreational parks, entertainment, and other related operations—for which a fee is paid for access or use—are subject to VAT. Also, when these services are outsourced, VAT will apply on both the commission and fee charged by the operators.
Source KPMG
