Supreme Court Ruling Exempts UK Private Hire Operators from 20% VAT Outside London

• The Supreme Court ruled against Uber regarding VAT on profits for private-hire operators outside London.
• Private-hire operators do not have to pay 20 percent VAT as they do not enter into contracts with passengers.
• The ruling followed a previous decision that classified Uber drivers as workers, affecting Uber’s tax obligations.
• The High Court initially ruled in favor of Uber, but the Court of Appeal reversed this decision.
• Uber appealed to the Supreme Court, which upheld the Court of Appeal’s decision.
• A separate case saw Bolt win against HMRC regarding VAT obligations.
• The ruling is seen as a significant decision for private hire operators in England and Wales.
• It prevents increased costs and complexity for operators and protects vulnerable passengers from fare increases.
• The decision allows operators to maintain their business models without being forced into a uniform approach.
• The ruling is viewed as a victory for UK private hire businesses against global companies like Uber.

Source: cityam.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.

---

---