- The Upper Tribunal Tax ruled in favor of Bolt in a VAT case against HM Revenue and Customs.
- The decision may impact other ride-hailing companies like Lyft, Gett, and Uber regarding VAT treatment.
- The dispute centered on whether Bolt’s services qualify under the Tour Operators Margin Scheme.
- Bolt argued for VAT on the margin between ride cost and driver payment, while HMRC disagreed.
- The First-tier Tribunal supported Bolt, stating its services are similar to those of tour operators.
- The Upper Tribunal upheld this decision, dismissing HMRC’s appeal.
- Other ride-hailing companies might benefit from similar VAT treatment, leading to potential VAT savings.
- HMRC may need to repay significant amounts in overpaid VAT to these companies.
- It is uncertain if HMRC will appeal to a higher court.
Source: vatabout.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.
