Zero Rated VAT on Caravans

It is often assumed that minor details don’t matter that much, but unfortunately with VAT a minor change if not noted can lead to a big and unexpected VAT bill. Take for example HMRC’s latest change for zero rating to caravans which is driven (no pun intended) by EC changes to towing regulations. Up to 20 April 2010 caravans more than 2.3 meters wide were zero rated for VAT, from 20 April 2010 only caravans over 2.55 meters wide qualify for zero rating, ones below 2.55 meters will be standard rated for VAT. The minimum length for zero rating to apply will remain at 7 metres long.

This increase in the width of a mere 25 centimetres could lead to caravan vendors under declaring substantial amounts of VAT if not taken into account. If you have any clients that sell caravans, or any clients where the nature of their supplies can be VATable or not depending on seemingly minor details please do not hesitate to use or free VAT helpline for an initial free VAT consultation from one of the VAT Peoples VAT consultants.

Tags: caravan vendors vat, VAT Consultants, vat on caravans, Zero rated VAT
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