Uber VAT

In a recent ruling the High Court found that Uber had a contractual obligation to its customers. Therefore the service provided was proivded by Uber and not the ‘self employed’ drivers.

Prior to this case Uber treated the supplies as having being made by the drivers. As the individual drivers sales would, in almost all cases, be less than the VAT threshold, the Uber fare was not a VATable supply. Following the ruling by the High Court, Uber will be the supplier of the service and hence the supply will now be VATable.

Potentially the case could result in a 20% iincreas in Uber fares.