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HMRC internal manual

VAT Partial Exemption Guidance

HM Revenue & Customs
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Other Partial Exemption issues: MOT testing

MOT tests are not exempt supplies. VAT incurred by an approved garage in relation to the annual testing of motor vehicles on behalf of the Department of Transport is for the purpose of its business and can be claimed in full. Where the business is partly exempt, the business should isolate any VAT incurred in respect of MOT testing and recover this in full. Any remaining input tax should be recovered according to the normal partial exemption rules.