How do I deal with the VAT on static caravans?
Contents
Summary
This article explains how to deal with the VAT on static caravans.
More Information
The VAT treatment of static caravans and their contents depends mainly on their size, but there are other factors that affect the treatment.
Removable contents, when supplied with or as part of a zero-rated caravan, are standard-rated, unless those contents are of a kind ordinarily incorporated by builders as fixtures in new dwellings. The rules surrounding this area are detailed on the HMRC website, and we would encourage you to read these carefully. Currently, searching for 'Caravans' or '701/20' on the HMRC website will bring up the relevant articles, but make sure that you are always up to date with the latest legislation.
New & Used Static Caravans
When adding a static caravan to unit stock, if it qualifies for VAT on removable contents, on the [Unit Properties] tab, in the "R.C. V.A.T?" field, select 'R' - Reduced Rate or 'Z' - Zero Rate. Platinum will then calculate the VAT accordingly.
 | Whilst on the "R.C. V.A.T?" field, press <F11> to view the help associated with this field. |
New Static Caravans
If you are adding a new static caravan to unit stock, it is important to fill in the 'VAT' amount from the purchase invoice on the [Purchase] tab, as this is used in the calculation of the VAT on the sale.
Used Static Caravans
There are two methods for the calculation of VAT on used static caravans. It is vital when adding or amending information about these units that the "Build Year" is accurately recorded as static vans built before 2013 have a completely different method of VAT calculation to those built later. If the "Build Year" is not specified on the unit record then it will be assumed to be built after 2013 for VAT purposes.
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