VAT change for static caravan verandahs

Duncan & Toplis  accounts manager Chris Pratt
Duncan & Toplis accounts manager Chris Pratt

Static caravan owners can reclaim VAT charged on verandahs following a recent ruling by the tax authorities

HMRC issued a brief detailing a change in the VAT liability of static caravan verandahs after a recent decision of the Upper Tribunal.

Accounts manager at Duncan & Toplis in Skegness Chris Pratt said: “Previously a verandah was seen as a separate sale to the caravan itself, despite whether they were being sold at the same time, meaning the sale was charged at standard rated 20 per cent VAT.

“The new rules state that when verandah or decking structures are sold with static caravans they are to be treated as a single supply and could therefore be charged at either standard rate, reduced rate or zero rate VAT depending on the relevant caravan rule.”

The change provides an opportunity to reclaim output VAT previously charged at the standard rate on verandahs sold with caravans.

For full details visit the HMRC website.