VAT Return question

[bailey!!]

Please can you tell me when a garage carries out its VAT Return, do the figures for MOT sales appear anywhere on it? I know MOTs are vat exempt so just wanted to check whether the sales figures are excluded from box 6 and whether they are excluded from the reconciled transaction count? many thanks

 

[STDFR33]

MOT l’s are not exempt. They’re ‘outside the scope’.
They do not appear on the VAT return.

 

[bailey!!]

MOT l’s are not exempt. They’re ‘outside the scope’.
They do not appear on the VAT return.

Thanks for your reply i'm a newbie to the VAT world, so if im looking at a VAT return for a garage any figures ie sales and reconciled transactions should not include or count any transactions or sales £'s relating to VAT is that correct or will they still be included in the sage breakdown?

 

[Scalloway]

If you are using Sage where they appear will depend on the T code used.

 

[UK Contractor Accountant]

Motor trade -most get the vat wrong on MOT work.

Vat is due on the profit element of the MOT. So if a MOT slot cost you £10 and you charge the customer £50 for MOT on the invoice, vat is due on the £40 profit element.

Lost count of the number vat inspections that have picked that one up over the years.

the standard MOT fee is exempt for VAT.

 

[STDFR33]

the standard MOT fee is exempt for VAT.

https://www.gov.uk/hmrc-internal-manuals/vat-taxable-person/vtaxper48000

 

[UK Contractor Accountant]

https://www.gov.uk/hmrc-internal-manuals/vat-taxable-person/vtaxper48000

the standard is exempt but some garages charge more than the standard (some less to get the repair work).

Where they charge more than the standard - vat due on the profit element.

Some include their labour charge as part of the MOT fee.- happens a lot where the garage itself is not an MOT testing station so have to take to their mates garage for the test.