VAT victory over verandah sales on static caravans

Static caravan owners are to benefit from an Upper Tribunal (UT) decision which has overturned an earlier First Tier Tribunal FTT) ruling supporting HMRC’s view that verandahs attached to the caravans were not zero-rated for VAT, unlike the vehicles themselves

The case was brought by Colaingrove Ltd which sold static caravans used for living accommodation as holiday homes on parks, rather than as touring vehicles, some of which were sold with a verandah. The veranda sat on posts on concrete pads on the site, and was connected to the caravan by a bar.

The sale of static caravans is zero rated by virtue of 5 group 9 schedule 8 VATA 1994. Colaingrove had previously said in evidence to the FTT case that the verandas were fitted to a particular caravan and if the accommodation was subsequently moved to another site, then the verandah would be moved with it as part of the caravan.

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