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HMRC internal manual

VAT Government and Public Bodies

Other local authority activities: miscellaneous (N to Z): tolls for use of roads bridges and tunnels

In 2000 the ECJ ruled that privately operated tolls were liable to VAT. Up to 1 February 2003, the UK treated all tolls charged to users of roads, road bridges and road tunnels as being outside the scope of VAT.

Since 1 February 2003 only tolls operated entirely by a public authority under a special legal regime remain outside the scope of VAT. For this purpose a public authority is any central or local government body. Tolls which are not operated under a special legal regime, or which are run by private operators, are taxable business supplies.