By judgement of 14 January 2016, the German Federal Fiscal Court has decided that providing parking space to employees against (small) cost sharing has to be qualified as service against remuneration with the consequence that this service is within the scope of VAT and in the absence of a tax exemption rule also subject to VAT. Thus, the employer has to declare the taxable turnover in his (preliminary) VAT return and has to pay the VAT to the tax office.
In case an entrepreneur performs services against remuneration, it does not matter if the services have been performed (predominantly) for business purposes (in the present case: granting of undisturbed business operations) or for nonbusiness purposes. This differentiation is only relevant in case of services which are performed without remuneration. But due to the fact that even in case of small cost sharing a service against remuneration is assumed and such service is within the scope of VAT, the above mentioned differentiation is not relevant is such case.