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Oak Tree Motor Homes Ltd v CRC, Upper Tribunal (Tax and Chancery Chamber), 25 January 2017
Definition of a caravan for VAT zero rating
Oak Tree Motor Homes Ltd sold campervans. Between March 2007 and May 2011 it accounted for VAT on the supplies. It then claimed a repayment on the basis that the vehicles were caravans for the purpose of VATA 1994 Sch 8 Gp 9 item 1 and should have been treated as zero rated. HMRC refused the claim.
The First-tier Tribunal decided the vehicles were not caravans and dismissed the taxpayer’s appeal.
The Upper Tribunal said the First-tier Tribunal was right to conclude that as a question of fact vehicles did not include caravans. Unlike a vehicle a caravan had no motor but had to be towed from place to place.
From a legal stance although caravan was not defined in VATA 1994 the purpose of Gp 9 item 1 was to provide relief for caravans that...
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