VAT’s not how much it costs to park a car
Operator leaves its prices unchanged despite new Covid rate
THE company that operates car parking services for all Iarnród Éireann train stations has not changed its prices despite a cut to the 23% VAT rate because of Covid-19.
Apcoa, which also operates car parks in many of the country’s large hospitals and a number of council-owned car parks, is continuing to charge a 23% VAT rate on tickets despite the rate being reduced to 21% at the beginning of the month until February.
The Irish Mail On Sunday purchased four tickets online this week, for railway stations in Cork, Galway, and Gorey, and also for Our Lady’s Hospital in Navan and was charged 23% VAT on all four.
An Iarnród Éireann spokesman said: ‘Apcoa consulted with us following the change in VAT rate. The cost of changing signage, and machine tariffs for a very short time would be significant, so we agreed that the rate for parking should remain unchanged.
‘However, it is a 21% VAT rate that is being charged, meaning parking rates pre-VAT are marginally higher. We have advised Apcoa that receipts issued should be updated to reflect this.’
The old VAT rate of 23% means a €3 ticket is made up of the cost of parking of €2.44 plus VAT of 56c.
The new VAT rate of 21% breaks down a the cost of parking of €2.48 plus VAT of 52c. This means customers are being charged 4c more than if the reduction in Vat was being passed on.
Receipts issued electronically by Apcoa for parking at various locations this week stated that the VAT rate was 23%, but this changed to 21% following queries from the Irish Mail on Sunday.
A Revenue spokesman said: ‘The issue of an invoice with an incorrect
VAT rate can attract a penalty of up to €5,000.’
The spokesperson also confirmed that the company could still be liable to pay the higher rate of VAT to the taxman if that was what was stated on the receipt.
Meanwhile, Aontú leader, Peadar Tóibín, whose Meath West constituency is the location of Our Lady’s Hospital, where one of the tickets was purchased, has accused Apcoa of ‘profiteering’.
A spokeswoman for Apcoa said the company was ‘aware that the VAT rate from the first of September should be 21%’, and requested that any further questions should be put in writing.
Subsequent emails to the company went unanswered.
‘Charging wrong rate can attract €5,000 penalty’