VAT Changes to Static Caravans
There remains much confusion about the changes regarding VAT on static caravans. Hopefully we can summarise it for you.
Since VAT was first introduced in 1973, only the furniture and fittings inside a new static caravan have been subject to VAT. However that is due to change on 6 April 2013.
The Government has approved legislation to introduce a 5% rate of VAT on the sale of static holiday caravans.
The new rate will affect static holiday caravans and touring caravans which are longer than 7 metres and /or 2.55 metres wide. Caravans which conform to BS: 3632:2005 standard, and second hand caravans which are occupied before 6 April 2013 will continue to qualify for the zero-rate of VAT.
The changes will not have any effect until 6 April 2013 so any static or touring caravans purchased before then will continue to attract the zero rate of VAT. In all cases removable contents will continue to attract VAT at the standard rate of 20%