Upper Tribunal Confirms Bolt’s Ride-Hailing Services Qualify for VAT Under Tour Operators’ Margin Scheme

• The Upper Tribunal agreed with Bolt Services UK Limited on using TOMS for VAT on ride-hailing services.
• The FTT had previously decided that the service was similar to those provided by tour operators or travel agents.
• HMRC argued that the FTT’s approach was incorrect and that Bolt’s services were not comparable to those of tour operators or travel agents.
• HMRC claimed the service was an in-house supply, combining drivers with Bolt’s app platform, and thus outside TOMS.
• The UT stated TOMS is not limited to traditional tour operators and focuses on the nature of services provided.
• The UT agreed with the FTT’s high-level comparison of Bolt’s services to traditional operators.
• The UT found that drivers’ services benefited passengers directly and were not materially altered or in-house.
• The UT concluded that Bolt’s services met TOMS requirements and dismissed HMRC’s appeal.

Source: taxscape.deloitte.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.

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