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VAT on Static Holiday Caravans

Static Holiday Caravans

The budget announced plans for VAT to be added to the sale of static holiday caravans with effect from 1 October 2012. At the moment the test for zero-rating is a ‘size’ test whereby the sale of caravans that exceed either 7m in length or 2.55m in width are zero-rated, even though many are used for holiday purposes.