The High Court today ruled that although caravans sales are zero-rated for VAT purposes, the fixtures and fittings installed within the caravans, such as baths, cooking appliances, folding beds, mirrors and wardrobes, are subject to VAT.
The court backed a VAT tribunal’s decision to this effect and dismissed an appeal by Talacre Beach Caravan Sales Ltd.
Roderick Cordara QC, acting on behalf of Talacre, had argued that, for VAT purposes, the sale of a caravan represented one single supply, and that the fixtures and fittings should therefore be zero-rated.
However, rejecting the challenge, Lindsay J said: “In my judgment, the removable contents… should be standard-rated where that would have been the rate otherwise applicable to their supply.”
A spokesperson for Talacre indicated that it would seek permission to challenge today’s ruling.
Talacre Beach Caravan Sales Ltd v Commissioners of Customs & Excise Chancery Division (Lindsay J) 5 February 2004.
Roderick Cordara QC and Andrew Hitchmough (instructed by Landwell (Solicitors)) appeared for the appellant; Rupert Anderson QC (instructed by the solicitor to Customs & Excise) appeared for the respondents.
References: EGi Legal News 5/2/04
