Uber VAT appeal driven out by Supreme Court

Taxi giant Uber has lost appeal over way VAT is charged as Supreme Court rules that operators cannot be forced to apply VAT to passenger fares in a landmark decision affecting online hailing platforms and bricks and mortar cab companies

The Uber appeal was brought against two UK taxi companies, who back in March, joined forces to fight a £500,000 legal battle against VAT being charged on private taxi rides outside of London.

Uber’s argument concerned the correct interpretation of the Local Government (Miscellaneous Provisions) Act 1976, which regulates the provision of private hire vehicles outside of London.

Now, the Supreme Court has thrown out the appeal, rejecting Uber’s argument and leaving the two companies, Delta Taxis and Veezu, along with the wider pre-booked taxi community in the UK, rejoicing.

Uber Britannia Ltd (UBL) claimed that private hire taxis should have to enter individual contracts with every passenger, increasing the fees for users of taxis across the country when they were booked in advance.

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