I understand there is no VAT on on-street parking, but do you treat this as zero rated, exempt or out of the scope of VAT. I am also led to believe that, until matters are sorted, some councils charge VAT for their off street parking and some do not, those who do not, are they zero rated, exempt or out of the scope. A sale being exempt from VAT is not the same as it being zero-rated. While no VAT is charged at all on VAT-exempt sales, VAT is charged at 0% on zero-rated sales. When you add up your VATable sales to see if they're close to exceeding the VAT limit, you should include zero-rated sales and exclude exempt sales.