- Georgia Court of Appeals ruled Uber liable for collecting sales tax from drivers between 2012 and 2015.
- Uber was considered a “headquarters operator” under a regulation for taxicab companies.
- Uber began operations in Georgia in July 2012, connecting riders with drivers via an app.
- Uber collected payments from riders and remitted them to drivers after deducting a service fee.
- In 2018, Georgia Department of Revenue audited Uber, finding unpaid sales tax and penalties.
- Uber admitted not collecting sales tax during the audit period, relying on drivers to do so.
- Georgia Tax Tribunal upheld the assessment, stating Uber’s model functioned like a taxicab headquarters.
- Superior court denied Uber’s petition for judicial review; Court of Appeals granted discretionary appeal.
- Court determined Uber was required to collect sales tax under taxicab regulation.
- Regulation required cars for hire to collect sales tax on fares, applicable to Uber’s business model.
- Court found the taxicab regulation valid and applicable to rideshare services like Uber.
Source: grantthornton.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.
