Caravan Cartel

VanMan2007

We just sold our static van on Llanrhidian Holiday Park, Gower, Swansea.

The "transfer of ownership" charges were £3,360! This included around £600 VAT! 28% of the sale price!

1 - Are these kind of charges usual?

2 - Is the seller liable to pay VAT? I thought we paid VAT on purchases?

Any help much appreciated, guys?

leveller2911

I would post this question in the tax section, there are a few accountants in there who will be able to clarify the vat rules... Just my opinion but from what you say it sounds like a rip off money for old rope venture.. Good luck

PS: We only have 2 rates of vat under EU laws those being 5 & 20%

anotherbaldrick

Send the local office of HM customs and excise a copy of the VAT invoice. If they are pulling a fast one the inspectors will be all over the trader like a rash.

http://www.hmrc.gov.uk/manuals/vatmargmanual/vatmarg13650.htm

http://www.duntop.co.uk/publications/Caravan-Sales-New-Rules-from-April-2013.pdf

keystone

VanMan2007 wrote: »

This included around £600 VAT! 28% of the sale price!

Not connected.

1 - Are these kind of charges usual?

In my understanding from friends who have been in your position yes. Total rip-off!

2 - Is the seller liable to pay VAT? I thought we paid VAT on purchases?

You are paying VAT @ 20% on the service rendered of "transfer of ownership". That is a service you have purchased and therefore liable to VAT. Its nothing whatsoever to do with the sale price of your van.

If I sell my house I will pay VAT on the solicitors bill. Same thing. No VAT rules clarification issues and no need to contact HMRC really. They will tell you the same thing. The real problem is the obscene size of the bill for the service provided which is, of course, a monopoly on each site and its written into their Ts&Cs I'll bet. So you can't claim ignorance either.

Cheers

macman

You pay VAT on goods and services. If the transfer of ownership procedure was a service, then it's VATable @ 20%.
It's not VAT on the sale price itself, since you are not presumably registered for VAT.
The pernicious transfer charges will doubtless have been in the T&C's when you purchased the caravan in the first place, so it can hardly have bene unknown to you. Didn't you ask them before you proceeded with the sale?

VanMan2007

leveller2911 wrote: »

I would post this question in the tax section, there are a few accountants in there who will be able to clarify the vat rules... Just my opinion but from what you say it sounds like a rip off money for old rope venture.. Good luck

PS: We only have 2 rates of vat under EU laws those being 5 & 20%

Thanks leveller, have posted in the TAX section. Thanks for your advice.

PasturesNew

There are always these fees when you sell a mobile home (residential), or holiday home, or even transfer ownership of a beach hut. Huge fees.....

VanMan2007

macman wrote: »

You pay VAT on goods and services. If the transfer of ownership procedure was a service, then it's VATable @ 20%.
It's not VAT on the sale price itself, since you are not presumably registered for VAT.
The pernicious transfer charges will doubtless have been in the T&C's when you purchased the caravan in the first place, so it can hardly have bene unknown to you. Didn't you ask them before you proceeded with the sale?

No, not a business, or registered for VAT, just a private owner. The transfer fee in 2007 was 5%. (Not counting VAT.) Allowing for inflation, that could've risen to 8%, so including VAT, that could account for the amount?

Macman, I had the same thought. Who reads the small print? We should, I know. I suggested the very same thing today. Sneaky!

VanMan2007

PasturesNew wrote: »

There are always these fees when you sell a mobile home (residential), or holiday home, or even transfer ownership of a beach hut. Huge fees.....

Thanks PasturesNew. Sounds like you may have been bitten as well?

Ianwzzz

I had a static caravan on Lowfields in Lincolnshire. When we wanted to sell the owners of the park were very awkward and did their best to put our buyers off. The costs were astronomical. I would never buy another static caravan and would advise anybody thinking about getting one to make sure they know exactly what they have to pay each year and what it will cost to get rid of it. Also get it all in writing otherwise you will lose thousands.

VanMan2007

Thanks for your replies, guys. Its looks like the site owner has been operating within the law. I would've been surprised had he not been, with so much to lose. So I guess we're stuck with it.

But I appreciate your help, advice and support, as always!