At present, sales of touring caravans, static caravans and holiday lodges are zero-rated for VAT purposes. The only items that are part of their sale that are taxable at the standard rate of VAT are the white good.

This is changing from 1 October. From that date sales of holiday and leisure caravans will be subject to standard rate VAT.

Residential caravans (aka ‘park homes’) designed and constructed for year-round living will continue to be zero-rated for VAT.

If your business sells static caravans the terms of occupancy will now be important when determining the VAT treatment. A static caravan on a holiday park with only 10 months available occupancy will have to be standard rated.

If you sell caravans, whether new or second hand, you should contact us to discuss your pricing structure and available VAT schemes.