Garages or parking spaces let together with dwellings (under shorthold tenancy agreements) for permanent residential use
VAT treatmentExempt
What this means for your business
- Charging VAT
- No VAT is charged because this supply is exempt.
- Reclaiming VAT
- VAT paid on costs directly related to this exempt supply cannot normally be reclaimed as input tax.
Official guidanceGarages or facilities specially designed for parking are standard-rated — VAT Notice 742 (opens in a new tab)