- Bolt Services UK Ltd (Bolt) has won a case in the First Tier Tax Tribunal (FTT) regarding the Tour Operators’ Margin Scheme (TOMS).
- Bolt, a mobile ride-hailing service similar to Uber, argued that it should only pay VAT on its margin, not the full amount received from customers.
- The FTT agreed with Bolt, stating that it was wrong to distinguish between traditional tour operators and Bolt’s on-demand rides.
- The FTT also dismissed HMRC’s argument that Bolt was altering the nature of the supply it received from drivers.
- This case shows that the TOMS applies to purely domestic transactions and supplies of just transport, not just traditional tour operators.
- This decision could have implications for Uber, who has a similar case with a significant amount of VAT at stake.
- There may be a wider review of the TOMS by HMRC and the possibility of the scheme ending in the UK.
Source: saffery.com
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.
