HMRC withdraws VAT concessions on caravans and boats

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Gina Dyer
Deputy Editor
Sift Media
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HMRC has withdrawn VAT concessions for caravan owners and boat builders because they don’t comply with EU law.

Caravan owners will no longer receive VAT concessions from 2012 because they conflict with European legislation, HMRC announced this week.

From 1 January 2012 caravan owners will no longer receive zero rated water and sewerage charges, and first time connection to utilities will now incur tax, where before they were zero rated.

“We recognise that caravan site owners may have to make adjustments and that caravan owners will now incur VAT on supplies that were previously zero rated or outside the scope of VAT. We will offer a 12 month period of notice before the concessionary treatment formally comes to an end,” said HMRC’s senior VAT adviser Mike McLa...

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