- The UK Upper Tribunal ruled in favor of Bolt Services UK Limited, allowing them to apply the Tour Operators’ Margin Scheme (TOMS) to their ride-hailing services.
- This decision marks a significant shift in how VAT rules are applied to modern tech-driven business models.
- The ruling may lead to a broader application of TOMS across platform-based services.
- Bolt operates as a private hire vehicle operator, purchasing transport services from self-employed drivers and reselling them via its app.
- HMRC initially rejected Bolt’s claim to apply TOMS, arguing their services were not comparable to those of traditional tour operators.
- The First-tier Tribunal sided with Bolt, and the Upper Tribunal upheld this decision.
- TOMS is a VAT regime for businesses acting as principals in supplying travel services, applying VAT only to the margin.
- The key legal question was whether Bolt’s services qualify as “travel services” under TOMS.
- The Tribunal ruled that passenger transport is a form of travel service, aligning with TOMS requirements.
Source: vatit.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.
