Tax for Vehicle Parking Spaces: Legal Analysis of the Procedure of Collection

Abstract

The purpose of this article is the legal analysis of the current procedure for collection of tax for vehicle parking spaces and the development and justification of the proposals for the improvement of the norms of article 268¹ of the Tax Code of Ukraine.

The formal and legal method was used during the processing of normative legal acts and factual information. The using of logical methods during the research (analysis, synthesis, abstraction, idealization, generalization) contributed to the formulation of proposals for the improvement of the legally established procedure for collection of tax for vehicle parking spaces.

The mandatory elements of the abovementioned local mandatory tax payment were analyzed and existing inaccuracies were noted. The representative offices whose activities are not related to the provision of parking services were singled out among taxpayers. It was proven that the branches (other separate divisions of legal entity) can not have the status of taxpayer due to the fact that they do not acquire the legal personality from the moment of their creation. In particular, they do not have the procedural legal ability and procedural legal capacity. It was noted that formally the object of taxation is the communal land plots, garages, parkings, parking lots (buildings, structures, their parts), that were built at the expense of the local budget and are used to provide the paid parking services. It was emphasized that the de facto the business entity which is the taxpayer operates the parking lot, the specially allocated communal parking, the total area of which is divided into the area used to provide paid services to drivers, and into the area where these services are provided free of charge to these persons. Attention was drawn to the fact that the abovementioned objects, from the point of view of accounting, are different for local self-government bodies and business entities that are taxpayers. In view of the fact that the norms of article 268¹ of the Tax Code of Ukraine should be performed by the last ones, the new definitions of the tax and legal concepts "paid parking lot" and "specially allocated parking" were formulated and proposed. It was established that the tariff for services for the use of paid parking lots fully covers the costs (including the tax for vehicle parking spaces) of the business entity (operator) related to the operation of the entire area of the object that is used for the provision of services. Considering this fact, the tax liability of the taxpayer should be calculated based on the total area of the object where parking services are provided. It was proven that there are no economically justified grounds for establishing the tax benefit for taxpayers.

The reasoned and recommended changes that should be made in the article 268¹ of the Tax Code of Ukraine, will contribute to the improvement of the legal regulation of the procedure for collection of the mentioned local mandatory tax payment.