§ Mr. Sheermanasked the Chancellor of the Exchequer why the collection of value added tax on the motor cycle part one test fee is being fully enforced from 11 June; why it has not hitherto been collected in some cases; and if he will make a statement.
§ Mr. Hayhoe[pursuant to his reply, 25 June 1984, c. 333]: The two-part motor cycle driving test was introduced in March 1982. Because part 1 of this test may be provided by commercial organisations, who may set their own fees, the fees are in law liable to VAT. Following a Customs and Excise ruling which was disputed unsuccessfully by a number of training bodies and after consideration by myself and my hon. Friend the Minister of State for Transport, a common implementation date of 11 June was chosen for the application of this ruling to commercial bodies and the Department of Transport. Customs and Excise will not collect VAT on test fees before that date where the tax has not been charged to the motor cyclist.
§ Mr. Sheermanasked the Chancellor of the Exchequer if he has any plans to impose value added tax at the standard rate on car driving test fees and MOT test fees.
§ Mr. Hayhoe[pursuant to his reply, 25 June 1984, c. 333]: No.