Quick question. I have a client who operates a caravan park. They bought a new caravan to hire out. The caravan was let out to random people for say 2 years. They now want to sell it on. How do I account for VAT on that sale?
Am I right that it's now a used caravan and therefore apply the 7/407 ratio as I do with other used caravans that they sell?
Does the fact that the caravan had been capitalised on their balance sheet make any difference to the VAT calculation?
Thanks in advance for your help.