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Originally Posted by Chris
I'm slightly worried myself, we are a small, non-VAT B&B and we have just bought a shepherd's hut to expand our offering from one room to two. The hut was delivered a few weeks ago and has its first paying guests at the end of the month.
It's not a static caravan, but then it's not a tourer either. It's a wheeled contraption designed to be hauled up the hillside by a horse and left in a field as shepherd's accommodation. Ours sits at the front of our property and while it is fully mobile, we're not intending to move it whilst in service and have it connnected into all the mains services.
There was no VAT on the purchase but I have just fired off a quick email to the manufacturer to find out whether he will be affected by the rule change - it might make the difference as to whether we can even think about buying a second hut at the end of this season.
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As it's a mobile caravan, VAT should have been applied on the purchase anyway. It is the anomaly of VAT not being applied to the sale of a static caravan that is being closed. The new rules don't apply until Oct 2012.
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1.202 The Government will also close loopholes in the VAT system to prevent avoidance and ensure compliance. From 1 October 2012, VAT will be extended to close loopholes, including by applying it to hairdressers’ chairs (to make clear that their rental is already subject to VAT), static holiday caravans (to bring in line with mobile caravans) and certain hot food (because most hot food is already subject to VAT).
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