United Kingdom Tax Tribunal Approves New Output VAT Calculation Method for Caravan Sales

The United Kingdom First-Tier Tax Tribunal Oct. 17 issued a decision in Case No. TC09324, approving a new method for calculating output VAT on caravan sales. The taxpayer sold caravans with removable contents, applied zero-rated or reduced VAT on the caravans, and applied the 20 percent standard VAT on the contents. The taxpayer later made an error correction notice for overpaid output VAT after using a different valuation methodology. The Tax Agency accepted the new method but rejected the claims, finding the original calculations fair and the difference between the methods insubstantial. On appeal, the Tax Tribunal disagreed with the ...