Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    Larrythelamb
    VAT being charged twice for car repair?
    • #1
    • 27th Jul 12, 3:20 PM
    VAT being charged twice for car repair? 27th Jul 12 at 3:20 PM
    ..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
Page 1
    • verityboo
    • By verityboo 27th Jul 12, 3:35 PM
    • 821 Posts
    • 1,035 Thanks
    verityboo
    • #2
    • 27th Jul 12, 3:35 PM
    • #2
    • 27th Jul 12, 3:35 PM
    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
    • #3
    • 27th Jul 12, 3:36 PM
    • #3
    • 27th Jul 12, 3:36 PM
    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.
    Last edited by Mr Thrifty; 27-07-2012 at 3:38 PM.
    • phill99
    • By phill99 27th Jul 12, 3:36 PM
    • 7,457 Posts
    • 6,662 Thanks
    phill99
    • #4
    • 27th Jul 12, 3:36 PM
    • #4
    • 27th Jul 12, 3:36 PM
    You should only pay the vat once. I think they are shafting you.
    Eat vegetables and fear no creditors, rather than eat duck and hide.
    • Quentin
    • By Quentin 27th Jul 12, 3:44 PM
    • 29,408 Posts
    • 13,689 Thanks
    Quentin
    • #5
    • 27th Jul 12, 3:44 PM
    • #5
    • 27th Jul 12, 3:44 PM
    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
    • #6
    • 27th Jul 12, 4:14 PM
    • #6
    • 27th Jul 12, 4:14 PM
    ..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
    • By Quentin 27th Jul 12, 4:18 PM
    • 29,408 Posts
    • 13,689 Thanks
    Quentin
    • #7
    • 27th Jul 12, 4:18 PM
    • #7
    • 27th Jul 12, 4:18 PM
    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
    • By McKneff 27th Jul 12, 4:20 PM
    • 34,514 Posts
    • 44,389 Thanks
    McKneff
    • #8
    • 27th Jul 12, 4:20 PM
    • #8
    • 27th Jul 12, 4:20 PM
    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
    Last edited by McKneff; 27-07-2012 at 4:30 PM.
    No one can make you feel inferior without your consent
  • Larrythelamb
    • #9
    • 27th Jul 12, 4:37 PM
    Here's the run down
    • #9
    • 27th Jul 12, 4:37 PM
    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
    • By Quentin 27th Jul 12, 4:51 PM
    • 29,408 Posts
    • 13,689 Thanks
    Quentin
    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)
    Last edited by Quentin; 27-07-2012 at 4:54 PM.
  • Larrythelamb
    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.
    • timjim
    • By timjim 27th Jul 12, 5:35 PM
    • 39 Posts
    • 20 Thanks
    timjim
    Larry the example you give above does not show VAT included on the individual line but is saying vat is chargeable at the rate shown against an item

    e.g No. 64666 Fan Motor Qty 1.00 147.31 20% VAT 147.31 is showing that VAT will be added at 20% to this item giving a total of 176.77
    • McKneff
    • By McKneff 27th Jul 12, 6:01 PM
    • 34,514 Posts
    • 44,389 Thanks
    McKneff
    OP, i really think you are reading the bill wrong.
    No one can make you feel inferior without your consent
  • Larrythelamb
    OK, thanks, I suppose it's a lesson in sourcing your own car parts amongst other things, L
    • glasgowdan
    • By glasgowdan 30th Jul 12, 12:21 PM
    • 936 Posts
    • 911 Thanks
    glasgowdan
    Remember the garage pays VAT when they buy materials, BUT they then get that VAT back, so that shouldn't charge you VAT on things they buy from their suppliers. They CAN charge you a sourcing fee, to cover their time buying in the parts. So, the invoice should be materials x (net), labour xxx (net) = TOTAL + VAT
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

121Posts Today

2,149Users online

Martin's Twitter
  • Glad to see @IamSairaKhan is offering out Prosecco not champagne on #CBB. Her time with me hasn't been wasted!

  • I can see @IamSairaKhan already starting to look after everyone, like she does me on a shoot. I hope they appreciate her in there #cbb

  • Why do some #CBB contestants feel the need to swear every other word. The power of profanity is in its rare shocking use. Its horrid.

  • Follow Martin