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VAT query construction of mobile log home

Can my client claim VAT back on the materials used for the construction of a mobile log home?

I was wondering if my client (a VAT registered construction company) can claim back VAT on the materials used for the construction of a timber mobile home (also classed as a caravan)? If so, will it be able to claim VAT on all of the materials, i.e. integrated kitchen appliances like a fridge, hob, etc.

Am I right in thinking the sale of this finished mobile log home to their customer will then be zero rated?

The timber mobile home will be used by my client's customer for holiday letting purpose.

Many thanks for any guidance given.

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19th Jul 2017 11:39

Yes, it will be able to claim back VAT on all of the costs, including the kitchen appliances.

The answer to the liability of the client's supply is, "it depends...".

What does the planning permission say? Can the holiday home be occupied all year round? Or is there a restriction?

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19th Jul 2017 15:27

you should look at notice 701/20 to decide whether this can be treated as a caravan. If not, it may be a building but may still qualify for Zero rating. In either case you can recover the VAT incurred in making the on ward supply.

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19th Jul 2017 15:31

Ooh, I'd missed the caravan bit! Was in constructed on or off site?

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