X Municipality had established a municipal parking fund in accordance with building and planning legislation. A client could, against payment of a contribution to the parking fund, be granted a dispensation from the building and planning legislation’s requirements for the construction of parking spaces in connection with construction.
The Tax Council confirmed that the contribution was not subject to VAT, as the municipality collected the contributions in its capacity as a public authority and therefore was not a taxable person. In this connection, particular emphasis was placed on the fact that only the municipality had the authority to grant the dispensation for the requirements for the construction of parking spaces.
Source: skat.dk
