Have just been through this and had to go back three years and pay the VAT on the TOTAL ammount charged for every MOT in the last three years and yet I NEVER charged any VAT on any MOT.
I am a small independant without own MOT facility but am vat registered. The ruling is that you must show on your invoice the price that the testing station charged you (with zero VAT).
If the testing station gives you 'trade' then that is all that you may charge, you may not add anything to that price. You may however charge whatever you like for submitting the vehicle for test or for any pre test inspection. Basically this is the end of the 'trade MOT' as we know it and will certainly give the edge to the larger fast fit type stations who can afford to discount their testing.
Just to add insult to injury I recently read of a court case where the judge ruled against a garage because they did not show on their invoice to their customer what price they had paid 'trade' for the parts they fitted, I wonder how long before these 'new' rules will be applied to the building trade etc: when everyone will have to show exactly how much they paid for the parts or materials they use. Could be interesting! especially when we all start to query the cost of electricity or the new conservatory, house, car, etc: etc :
Many thousands £ lighter but a lot wiser
Colin Calder.