The current price of a Class IV (Private car and light van below 3500Kg) vehicle test is £54.85.
VAT is not applied to the price charged by the testing station.
If a repairer does not itself test the vehicle but takes it to a testing station, as we do, and then charges a rate that is different to the rate charged to them by the testing station, then VAT has to be paid on the difference.
[This explains the 'sum' included on our invoices whenever a vehicle test is charged. The cost to us of the test, £40.00, is not subject to VAT (Code 4). The additional cost, or mark up, to take the total cost to the standard, regulated test fee is £14.85
(or £12.37 plus VAT.) The cost to the customer is just the standard regulated fee of £54.85]
This is the only instance that we know where a supplier is obliged to disclose the cost price of any product that it sells. It is a requirement of H.M. Revenue and Customs and is, in our opinion, an objectionable and ill-thought piece of legislation.