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seanferguson13, Solicitor
Category: Law
Satisfied Customers: 31
Experience:  3 year qualified solicitor with expertise in UK taxation.
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We have just sold our static caravan privately. It was sited

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We have just sold our static caravan privately. It was sited on a caravan park in mid Wales. Last October my husband told the site owner that we would not be returning next season and asked him if he would give us a price for buying the caravan from us. He told my husband that he could not afford to buy it from us and we would have to sell it ourselves. We have, as mentioned above, now sold the caravan. The owners of the site had no involvement whatsoever in the sale.
We have received an invoice from them asking for commission at 15% for the sale of the caravan plus 20% VAT on the 15%. To some extent I can understand the "commission" but I am surprised at the added VAT.
Can you tell me if they are legally able to charge commission and VAT.
Thanking you for your help.
Glenice Watkins.
seanferguson13 :

Hi there

seanferguson13 :

As far as I am aware, from April 2013, caravans which exceed the limits of size of a trailer for the time being permitted to be towed on roads by a motor vehicle having a maximum gross weight of 3,500 kilogrammes and is either:

a. manufactured to standard BS 3632:2005 approved by the British Standards Institution, or

b. second hand and manufactured to a previous version of standard BS 3632 approved by that Institution and were occupied before 6 April 2013.

Will be zero rated.

seanferguson13 :

As a general point VAT should be charged on taxable supplies by a taxable persons. To check if he is a taxable person, ask for his VAT registration number then check it with HMRC. If he is charging VAT I am assuming it is for a supply other than the caravan (i.e. services associated with the sale). If so, what sort of service has he supplied as this will impact whether VAT is due? If this commission is indeed payable for the supply of the caravan (which is a question of fact) then the VAT charged should be at 0%.

seanferguson13 :

Hope this helps

Customer: Thank you for your reply. I am not sure what you mean when you say services associated with the sale. The caravan was sited on a pitch and was linked up to electricity and water. Are they the services you refer to. I have already checked with HMRC and the owners are VAT registered.
seanferguson13 :

Basically I am asking what was the "commission" for? What does the money you are paying relate to? Are you contractually obliged to give them the 15% of the sale?

seanferguson13 and other Law Specialists are ready to help you
Customer: replied 3 years ago.
We are wondering what the commission is for, as the owners have had no part to play in the selling of the caravan. The money was exchanged through BACS from the new owners account to ours. We have never signed a contract so I interpret that as not being contractually obliged to give them the 15% commission. Is that correct.
If you have not made any agreement with them (verbal or otherwise) then the payment should not be due. Ask them:

1. What the commission is for?
2. Under what contract they are seeking to charge this commission
3. Why do they believe VAT is chargeable and under what statutory provision are they seeking to charge it?

Kind regards

Customer: replied 3 years ago.
Thank you Sean for getting back to me. Your information has been very helpful.

Kind Regards.
Glenice Watkins