In 2012, the First-tier Tribunal ruled that overpayments at pay and display car parks were not consideration for a supply of parking for VAT purposes. HMRC did not appeal that decision, but successfully contested a similar argument run by NCP which the Court of Appeal rejected in 2018. The CoA ruled that NCP was offering an hour’s car parking for at least £1.40, so if someone inserted £1 and 50p coins knowing that they would get no change, then the consideration for VAT purposes was £1.50.
Source Deloitte
