VAT, Uber, and the “Gig Economy”: Recent Developments and Implications for Businesses

• Uber and other ride-hailing apps are facing VAT issues
• Bolt has won a case allowing them to use the Tour Operator’s Margin Scheme (TOMS) for VAT calculations
• HMRC wants Uber and Bolt to pay VAT on the full selling price, but they argue they should only pay on the profit margin
• An appeal in Uber’s case is scheduled for early 2024
• HMRC is also contesting the use of TOMS in the short stay lettings market
• Sonder won a case against HMRC, but an appeal is set for December 2024
• HMRC may seek to change the law if they lose these cases
• Businesses affected should consider submitting protective claims for VAT overpaid
• Retrospective claims are generally capped at four years.

Source: albertgoodman.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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