Posts tagged Caravans

With summer threatening to become a reality at last it’s probably a good time just to refresh  our memories on the changes to the VAT liability of the supply of caravans made on or after  6 April 2013.

Under the new rules the VAT liability of a caravan will either be standard, reduced or zero  rated although in all cases the sale of removable contents remains standard rated.

The sale of a caravan is standard rated if it does not exceed 7 metres in length and 2.55  metres in width.

The sale of a caravan is reduced rated if it is longer than 7 metres or wider than 2.55 metres  and is not manufactured to BS 3632:2005.

The sale of a caravan is zero rated if it is longer than 7 metres or wider than 2.55 metres and  is manufactured to BS 3632:2005.

The liability of the sale of a second hand caravan is standard rated unless it is longer than 7  metres or wider than 2.55 metres, was occupied prior to 6 April 2013 and meets BS  3632:2005 or an earlier version of that standard, in which case it can continue to be zero  rated.

The sale of a second hand caravan may qualify for the second hand margin scheme if it was  purchased from a private individual or a business that is not registered for VAT.

The same rules apply to other types of supplies of caravans (eg, leases and deemed  supplies).