Vat rate on car service

ZETOR_IS_BETTER

Got my car serviced with my local dealer and they charged 13.5% vat.
Anyway talking to my friend and he got his car serviced by an independent garage and he was curious about the bill. He was charged 23% vat.

Is this right that a main dealer charges 13.5% and an independent garage charges 23%?
Is yer man chancing his luck?

Stheno

ZETOR_IS_BETTER wrote: »

Got my car serviced with my local dealer and they charged 13.5% vat.
Anyway talking to my friend and he got his car serviced by an independent garage and he was curious about the bill. He was charged 23% vat.

Is this right that a main dealer charges 13.5% and an independent garage charges 23%?
Is yer man chancing his luck?

Think parts are 13.5 and services are 23? Could be very little labour?

Kenny Logins

23 on parts and 13.5 on labour, no?

http://www.revenue.ie/en/tax/vat/supplies/index.html

Frynge

Stheno wrote: »

Think parts are 13.5 and services are 23? Could be very little labour?

^^^^^^^^^^^
What he said

i would have assumed the other way round, parts; 23%, labour; 13.5%

Stheno

Frynge wrote: »

^^^^^^^^^^^
What he said

i would have assumed the other way round, parts; 23%, labour; 13.5%

Yeah my mistake

So if the parts are the greater part of the bill, the vat is in total 23% if labour is the most then the vat is 13.5%.

Apologies, I'm forever mixing up those rates

ZETOR_IS_BETTER

Stheno wrote: »

Yeah my mistake

So if the parts are the greater part of the bill, the vat is in total 23% if labour is the most then the vat is 13.5%.

Apologies, I'm forever mixing up those rates

Learn something new everyday

That clears it up as mine was a standard service while my friend had a few things done to his.
Cheers lads

George Dalton

The two thirds rule does not apply to the repair of motor vehicles or agricultural machinery.

All repair invoices should be charged out at 13.5% on labour and 13.5% on all parts except for tyres and batteries which are charged at 23%

ants09

Kenny Logins wrote: »

23 on parts and 13.5 on labour, no?

http://www.revenue.ie/en/tax/vat/supplies/index.html

vat on car repairs is @ 13.5% on the labour and parts

http://www.revenue.ie/en/about/foi/precedents/garage-repairs-and-maintenance.html

As per a revenue precedent.

ZETOR_IS_BETTER

So basically my friend should have been charged 13.5% on what was done on the car?
If he got tyres and a battery he would have been charged 23% just on these two items.

Stheno

ZETOR_IS_BETTER wrote: »

So basically my friend should have been charged 13.5% on what was done on the car?
If he got tyres and a battery he would have been charged 23% just on these two items.

Seems so from what GD and others have said?

ZETOR_IS_BETTER

Stheno wrote: »

Seems so from what GD and others have said?

yeah seems be but i just want to be sure as my friend got a service and two tyres.
And he said it was 23% overall charge which would be wrong?

George Dalton

Yes your friend should have been charged 13.5% VAT on everything except the tyres.

Batteries, tyres and tyre tubes must be charged at 23%, everything else is 13.5%

Maybe your friend is mistaken and misinterpreted the invoice?

Stheno

ZETOR_IS_BETTER wrote: »

yeah seems be but i just want to be sure as my friend got a service and two tyres.
And he said it was 23% overall charge which would be wrong?

Should have been 23% on the tyres and perhaps the fitting?

13.5 on the rest?

bmstuff

Stheno wrote: »

Should have been 23% on the tyres and perhaps the fitting?

13.5 on the rest?

...
23% on goods
13.5% on labour

end of

pred racer

George Dalton wrote: »

The two thirds rule does not apply to the repair of motor vehicles or agricultural machinery.
All repair invoices should be charged out at 13.5% on labour and 13.5% on all parts except for tyres and batteries which are charged at 23%

Does that mean, that car parts and labour are necessities, but tyres and batteries are luxuries:D

Stheno

bmstuff wrote: »

...
23% on goods
13.5% on labour

end of

So OPs friend was clearly overcharged then.

George Dalton

pred racer wrote: »

Does that mean, that car parts and labour are necessities, but tyres and batteries are luxuries:D

How can mere mortals such as ourselves comprehend the thought process of the revenue commissioners?? :pac:

Stheno

George Dalton wrote: »

How can mere mortals such as ourselves comprehend the thought process of the revenue commissioners?? :pac:

The revenue apparently are just the enforcers/overseers, tis the government who make the strange rules

George Dalton

bmstuff wrote: »

...
23% on goods
13.5% on labour

end of

Not in this case. It is as already outlined in the thread.

George Dalton

Stheno wrote: »

The revenue apparently are just the enforcers/overseers, tis the government who make the strange rules

Exactly, so it is revenue that come up with the strange exceptions and precedents using some brand of logic that nobody else can understand....

bmstuff

George Dalton wrote: »

Not in this case. It is as already outlined in the thread.

I don't know in this case, I have not seen the invoice, but this is the way it has to be invoiced.

Stheno

George Dalton wrote: »

Exactly, so it is revenue that come up with the strange exceptions and precedents using some brand of logic that nobody else can understand....

It takes a warped mind

George Dalton

bmstuff wrote: »

I don't know in this case, I have not seen the invoice, but this is the way it has to be invoiced.

Not according to revenue.

George Dalton

ZETOR_IS_BETTER wrote: »

yeah seems be but i just want to be sure as my friend got a service and two tyres.
And he said it was 23% overall charge which would be wrong?

This exact scenario is actually dealt with on the revenue website:

revenue.ie wrote:

A car repair service is provided at the same time as the fitting of a set of tyres for a single consideration. As the supply of car tyres does not normally form part of a routine car service, the repair service and the supply of tyres would be regarded as a multiple supply. Both supplies are physically and economically dissociable from each other. In these circumstances the consideration should be apportioned so that the service is taxed at the reduced rate and the tyres at the standard rate.

So there you have it from the horses's mouth so to speak

Link:

http://www.revenue.ie/en/tax/vat/leaflets/mixed-supplies-goods-services.html

ZETOR_IS_BETTER

George Dalton wrote: »

Maybe your friend is mistaken and misinterpreted the invoice?

I'll get onto him tommorrow and double check

bmstuff

George Dalton wrote: »

This exact scenario is actually dealt with on the revenue website:



So there you have it from the horses's mouth so to speak

Link:

http://www.revenue.ie/en/tax/vat/leaflets/mixed-supplies-goods-services.html

Ok, the Revenue is saying this:
In these circumstances the consideration should be apportioned so that the service is taxed at the reduced rate and the tyres at the standard rate.

What differs from our statements?
Service at 13.5%
Goods at 23%?

bmstuff

bmstuff wrote: »

.........

[/B]What differs from our statements?
Service at 13.5%
Goods at 23%?

Because you weren't referring to just tyres when you said........

Service at 13.5%
Goods at 23%



Price of fitting tyres is included in the price of the tyre, price of fitting say a balljoint or wheel bearing isn't.

George Dalton

bmstuff wrote: »

Ok, the Revenue is saying this:
In these circumstances the consideration should be apportioned so that the service is taxed at the reduced rate and the tyres at the standard rate.

What differs from our statements?
Service at 13.5%
Goods at 23%?

What about the parts used in the service; oil filter, oil, spark plugs etc? They are part of the service so the whole service is charged at 13.5% not 23%

If I am reading your posts correctly then you are saying they should be charged at 23% with just the labour at 13.5% This is incorrect.

Technoprisoner

so how come the ncts charge 23% vat when all they do is provide a service??

George Dalton

Technoprisoner wrote: »

so how come the ncts charge 23% vat when all they do is provide a service??

The low rate only applies to vehicle maintenance or repair. The NCT is not maintenance/repair so is charged at the standard rate.

http://www.revenue.ie/en/tax/vat/rates/decision-detail-00618.jsp

bmstuff

George Dalton wrote: »

What about the parts used in the service; oil filter, oil, spark plugs etc? They are part of the service so the whole service is charged at 13.5% not 23%

If I am reading your posts correctly then you are saying they should be charged at 23% with just the labour at 13.5% This is incorrect.

Yeah ok got you, but going through previous bills, they show different things too.
Some show suspension parts changed and VAT at 13.5% both the service and the parts, while other invoices from other shops show suspension job done to another car, part billed at 23%, labour at 13.5
I can see a recent set of tyres was charged at 23%, while the alignment itself was charged at 13.5%

I suppose this is not 100% clear for all the shops.

But really, the difference in rate between a tyre and a ball joint is ridiculous, they are both consumables and do wear overtime and need changing regularly.
In my case, I need new rear tyres every 10.000 km.