Amsterdam Court of Appeal ruled that the parking element in a PSF arrangement is considered a separate supply for VAT purposes.
Low VAT rate
The importance of this question obviously lies in the VAT rate to be applied. The abbreviation stands for Park - Sleep - Fly. These packages are offered at Schiphol Airport and involve driving to a hotel, parking your car, sleeping and then flying to your destination. Your car remains in the car park for the duration of your trip. The PSF package is an extension of the hotel's standard package by allowing you to park in the hotel car park for a maximum of 29 days following your stay at the hotel (the PSF package is €40 more expensive than the standard package).
The hotel is obviously about selling rooms. Staying in a hotel is subject to the low VAT rate of 9%, but parking is subject to the general VAT rate (21%). However, the hotel sees its package as one service, for which one price is charged, and therefore pays VAT out of the entire price at 9%.
Performance not indivisible
However, the court ruled that the supply made by the hotel was not indivisible and that splitting it into separate supplies was not artificial. Accordingly, the tax authorities were right to remove the parking element from the supply and subject it to the general VAT rate (21%).
Next in dispute is how to allocate the price of a PSF package to the stay at the hotel on the one hand and the parking of the car on the other. The hotel charges €8.49 for the parking service.
The court confirmed that the market value method should be used for this allocation and that the amount of €36.35 (€40 with a markdown for the use of the shuttle bus) allocated by the tax department to the parking service was certainly not too low because 7 days of parking at Schiphol in the year in question already cost €80.