- FTT concluded that a company could use a new method to apportion output VAT between sales of caravans and removable contents
- Caravan sales are liable to VAT at reduced or zero rate, while removable contents are at standard rate
- ACCSL used cost as basis for apportionment, but later undertook a valuation exercise for more accurate results
- HMRC accepted new method for future VAT returns but rejected past claims
- ACCSL appealed to FTT, arguing for retrospective change in apportionment methods
- FTT found in favor of ACCSL, citing Supreme Court decision on fairness and equality in calculating output tax
- Operators in caravan sales sector should review their position and consider making claims for overpaid output tax using ACCSL’s method
- HMRC may appeal decision or update guidance based on judgement.
Source: saffery.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
