Two multi-storey car parks sit side by side on a Dublin street. One is obliged to charge VAT on its parking fees, the other is not. Does this seem fair to you? The European Court of Justice doesn’t think so and, in a decision which will have a significant impact across a range of sectors, ruled that Ireland’s VAT treatment of State and local authorities will have to change. And while the case is unlikely have a significant impact on the financial services sector it does provide an interesting lesson in demonstrating the ability of the European Commission to affect tax policy in the State, writes Niall Campbell.