- UK Tax Tribunal rules in favor of ride-hailing firm Bolt, exempting them from paying VAT on the full value of each ride
- Bolt is only liable for VAT on the ‘marginal’ value it earns, not the total fare charged to passengers
- HMRC is disappointed with the ruling and considering their options, likely to appeal to the Upper Tribunal
- The ruling clarifies that Bolt’s PHV services fall within the scope of the Tour Operators Margin Scheme (TOMS)
- The ruling sets a precedent for Bolt and has implications for the broader ride-hailing sector, including Uber
- Uber’s similar case is scheduled for hearing in the first half of 2024
- This ruling is significant for the gig economy and digital platforms in terms of taxation and regulatory frameworks.
Source: taxi-point.co.uk
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.
