Posted by Steve Norman on June 10, 2005, 1:34 pm, in reply to "Re: M.O.T & V.A.T"
Hi Tony, The only way that you can charge just the difference is invoice it separatly. The MOT is a disbursment, the exact cost passed to the customer, then your profit element (or labour) charge + 17.5% VAT.
I know this as I was caught out & had to pay back pay VAT. Since then the section has been added to the VAT guide 700 page 153 / 154.
It is available for download from www.hmce.gov.uk.
If MOT testing stations charge VAT on the MOT it would become easier for us, as we only have to pay it & claim it back as any other 'part'.