- The UT addressed whether BSUL’s ride-hailing service qualified for TOMS under UK VAT law.
- BSUL provides on-demand private hire transport services via a smartphone app.
- Since August 2022, BSUL has operated as a principal, purchasing transport services from self-employed drivers and resupplying them to customers.
- BSUL applied TOMS for VAT purposes and sought a ruling from HMRC.
- HMRC concluded BSUL’s services did not fall within TOMS, leading to an appeal to the FTT.
- HMRC argued BSUL’s services were not commonly provided by tour operators or travel agents and were materially altered.
- The FTT allowed BSUL’s appeal, and HMRC appealed to the UT.
- The UT considered if BSUL’s services were commonly provided by tour operators or travel agents and supplied without material alteration.
- The UT dismissed HMRC’s appeal, agreeing with the FTT that BSUL’s services fall within TOMS.
- The UT concluded BSUL’s services are akin to those provided by tour operators or travel agents and not materially altered.
- BSUL is only liable for VAT on its profit margin, not the full fare.
- The decision has significant implications for the VAT treatment of similar ride-hailing services in the UK.
- HMRC may seek to appeal the decision.
Source: rpclegal.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.