Upper Tribunal Confirms VAT Tour Operators’ Margin Scheme Applies to Bolt’s Ride-Hailing Services

• The Upper Tribunal agreed with Bolt Services UK Limited that VAT should be accounted for under the Tour Operators’ Margin Scheme for ride-hailing services.
• The First-tier Tribunal had previously decided that the service was similar to those provided by tour operators or travel agents.
• HMRC argued that the First-tier Tribunal’s approach was incorrect and that Bolt’s services were not comparable to those of tour operators or travel agents.
• HMRC claimed that Bolt’s service was an ‘in-house’ supply, combining drivers with Bolt’s app platform, and thus outside TOMS.
• The Upper Tribunal stated that TOMS is not limited to traditional tour operators and focuses on the nature of services provided.
• The Tribunal agreed with the First-tier Tribunal’s approach in comparing Bolt’s services to traditional operators.
• The Tribunal found that the drivers’ services benefited passengers directly and were not an ‘in-house’ supply.
• The Tribunal concluded that Bolt’s services met the requirements of TOMS 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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