The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note explains the VAT treatment of supplies of caravans and providing holiday accommodation in caravans.
The Caravan Sites and Control of Development Act 1960 and The Caravan Sites Act 1968 provide a definition of what constitutes a caravan. The legal definitions is:
“Any structure designed or adapted for human habitation that is capable of being moved from one place to another (whether being towed or by being transported on a motor vehicle so designed or adapted).”
The caravan must be no more than:
20 metres long excluding the drawbar
6.8 metres wide
3.05 metres high when measured internally from the lowest floor level to the highest point on the ceiling
If it is a twin unit caravan, it must be:
“...composed of not more than two sections separately constructed and designed to be assembled on site by means of bolts, clamps or other devices.”
In order for the caravan to be designed or adapted for human habitation it must have the attributes that constitute a dwelling, eg a kitchen, bathroom and sleeping accommodation.
The word caravan would also includes a mobile home, static caravan or a residential caravan, etc. However, it would not include a motor home / motor caravan.
If the caravan fails to meet the conditions outlined above then it may still qualify for zero-rating as a dwelling. More information can be found in the Construction ― zero-rating of construction services guidance note.
With effect from 6 April 2013, The VAT treatment will depend upon
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