VAT being charged twice for car repair?

Larrythelamb_2 · 27 July 2012 at 3:20PM

..I've posted this as a reply to an old thread so I'm starting a new one here to be sure of a response.
'I've just picked up my car from a service, MOT and crash repair. It was a large bill and so I am going over it with a fine toothcomb. In the 'parts' section of the invoice all parts are quoted with VAT paid, i.e. the cost of the part of which 20% is VAT, so this is an over the counter price and not a trade price. The sum total of all parts, in this case £476.00, goes over to form part of the net total and then on the net total figure, £762, VAT is added to create a gross at £910 approx.
I've rung the garage, who I have used before, and they say everything is in order and that's the way things are charged these days.
I am feeling a bit ripped off, any clues?
Thanks Larry

verityboo · 27 July 2012 at 3:35PM

I'd feel ripped off too. Prices on a garage invoice are usually in my experience quoted excluding VAT as it is added at the end. HMRC offer a VAT helpline on 0845 010 9000 who you could call, it sounds as though it would be worth it in your case with the sums involved

Mr_Thrifty · 27 July 2012 at 3:36PM

Typical garage.

Yes, you're being ripped off. And lied to, too.

Tell them to sort it or you'll report them to HMRC, who I'm sure will become very interested in their VAT accounts.

phill99 · 27 July 2012 at 3:36PM

You should only pay the vat once. I think they are shafting you.

Quentin · 27 July 2012 at 3:44PM

Does the bill actually say the parts are listed including VAT?

If so, deduct the appropriate VAT from the total and just pay that, pointing out how you have arrived at the total owing and await their response.

Larrythelamb_2 · 27 July 2012 at 4:14PM

..I phoned them up when I got home and used the 29.50 charge for new oil in the 'parts' section as an example and asked if this was a price including VAT and they said it was. I'm going to get someone to go over this because I know these guys at the garage and I want to be watertight with my complaint. Thanks for your help. L

Quentin · 27 July 2012 at 4:18PM

The person to whom you spoke may not have understood.

It seems the invoice doesn't actually state you have been charged VAT on parts twice??

If that's the case, you cannot have a "watertight" case of being charged twice - they will simply say you were misinformed over the phone.

Garage bills don't normally list parts as VAT inclusive and labour excluding VAT.

McKneff · 27 July 2012 at 4:20PM

Add the bill up yourself manually.
Garage I went to used some silly system in that they quoted along the line the price including vat but the total at the bottom was
excluding VAT (so not a true product of the figures above)

Then VAT was added to thr figure and was then correct in that it added up to the first total.

Am I right in saying that there is no VAT on the actual MOT

Larrythelamb_2 · 27 July 2012 at 4:37PM

Labour:
Radiator + fan motor remove and 1.00 hour + 20%VAT 65.00
Pads Remove and fit 0.50 +VAT 32.50
Labour sub total
97.50

Parts (example)
No. 64666 Fan Motor Qty 1.00 £147.31 20% VAT 147.31

..............................................................................Parts sub total
478.98

Fixed Price
MOT Test 0.00 VAT 54.85
Full Service 20% VAT 125.00
Brake clean etc 20%VAT 12.00
Fix. Pr. sub total
191.85

Net total 762.33
VAT 141.48
Gross total 903.81

All parts have Qty, Price, VAT and Nett columns, it all adds up correctly on that score to 472.98. Plugs are charged at £5.02 ea so this is not a trade price.

Thanks, L

Quentin · 27 July 2012 at 4:51PM

It looks like they show the VAT rate against the item (so correctly the MOT shows O vat to be charged, and everything else 20% VAt to be charged).

This VAT has been added at the end.

(Shop around for your MOT next year, lots of places do it much cheaper than you are paying)

Larrythelamb_2 · 27 July 2012 at 5:18PM

Yes, the VAT is included in each item, totalled up and the VAT is again added on the grand total, just doesn't seem right. I agree, garages are not allowed to charge VAT on an MOT and they don't in this case.

VAT being charged twice for car repair?

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