Caravan VAT zero rate extended


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The sale of caravans designed for all-year round occupation, ‘residential caravans’, will continue to be zero-rated for VAT, HMRC has said.

The news arrived in Revenue and Customs Brief 21/15 following the publication of a revised British Standard (BS 3632:2015), on which the VAT zero-rate relies.

VAT consultant Les Howard told AccountingWEB the extension would affect comparatively few people:

“It’s significant for a very small number of people, such as a residential caravan park. For them it’s a simple case of ‘does it apply to us, yes or no?’

“It also affects caravan dealers, those who buy and sell,” Howard said. “It affects comparatively few people, for example people who live in Hull where most caravan manufacturers are based, you would know about this.”

HMRC has published a guide (VAT: Maintaining the zero-rate for residential caravans).

The new legislation in The Value Added Tax (Caravans) Order 2015 has also been published.

In 2014 there was a double-digit increase in new caravan sales and new motor-home registrations, according to the National Caravan Council.


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