I have read a lot of responses that focus too much on Value Added Tax and whether or not the PCN issuing company have to account for it.
Trolls and misinformation agents will try to reduce BoEVAT to an argument about VAT or take you off at a tangent to the point in question, a classic but transparent deflection technique used by idiots who think themselves cleverer than you.
Either they just don't get it or they are being deliberately misleading. Either way it is the genuine justice seekers who will suffer.
This is a complete red herring because it is not about them accounting for VAT, it is about you accounting for VAT. You need it on record for your own VAT accounting purposes. They have to include VAT on the invoice; even if they are so-called zero-rated. They must account for VAT even if they charge it at 0%.
Where a company is not VAT registered or is exempt, this must be clearly stated on the invoice.
Tribunal Case Bristol City Council LON/99/261 which is enshrined with-in HMRC VAT Brief 57. Parking bandits and many other PCN issuing companies are required to pay VAT on the money they collect by the way of Charges. Now here goes, whilst its true to say that the Parking/Penalty Charge Notice itself remains outside of the scope of VAT (just like the toaster below), the invoice does not, when such is required by the retail (end user) customer.
This is a funny bit, if one purchases a new toaster from Curry's, the goods are displayed at a given price say £24.00 the retail customer pays the money and wishes the staff a very good morning. However, if the customer (being a business or otherwise) requires an invoice then VAT separation takes place i.e. £20.00 for the toaster and £4.00 for the VAT @ 20% typically.
There is no getting away from this if the customer exercises their right to an invoice.
(if one was purchasing a ball point pen at a cost of £1.50, nobody would bother with an invoice, but technically they could).
When it comes down to it, whether or not VAT is actually charged is neither here nor there, if the customer requires an invoice the charging company is required to provide one on which they account for VAT, even if they are not VAT registered or exempt, i.e. they must say so on the invoice.
A refusal is simply VAT fraud.
The parking bandits and their hired stooges like to put stuff out just to confuse the issue.
Once again for the hard-of-hearing:
Penalty Charges are not fines!