VAT & The MoT

Did you know........

As a Vehicle Testing Station, testing for the non-authorised trade:
If you discount the retail fee to a garage and he charges it out at the same money- then no VAT is chargeable by him.
If he ‘marks-up’ your charge and shows that mark-up as an arrangement fee (or similar) separately on his invoice- then VAT is chargeable on the mark-up only.
If he ‘marks-up’ your charge and invoices it out as one price, then VAT is chargeable (to his customer) on the whole amount.



As the man in the street then, you may be better to go direct to the garage that actually does the test, this way you are guaranteed no VAT on the test fees and therein, no hidden charges.
Some garages (arguably) purport to be MoT test stations and word their signage and adverts carefully in order to tempt you into using them and then they just courier your vehicle to a licensed station for its test. It is probable then that they get involved at all stages of repairs and pricing when you could, quite easily cut-out the ‘middle man’. Of course, this arrangement may suit you and is not breaking the law, many garages do it but in these austere times you might save money if you ‘went direct’. Try asking next time “do you carry out the MoT yourselves” or take a close look at your MoT certificate; is the garage address printed the same place you took the car to?

By all means ask here on the forum if you would like further advice.