BB/21A/96 MOT test charges
Business Brief, Issue 21. 17 October 1996
Following a review of their policy on the VAT treatment of Ministry of Transport (MOT) tests, Customs and Excise are introducing changes to operate from 1 November 1996, which will simplify the law in this area.
We are also clarifying the conditions which must be met, if the MOT test fee charged by the test centre to an unapproved garage and recharged to the latter's customer, is to be treated as a disbursement.
The revised position
The charge for an MOT test provided direct by a test centre to its customers is outside the scope of VAT, provided it does not exceed the statutory maximum.
The discount given by a test