Uber Unsuccessful in Supreme Court Appeal Against VAT Ruling
Uber's appeal to impose a 20% VAT charge on rival taxi operators outside London was dismissed by the Supreme Court. The decision highlights differing contractual requirements for London and other regions while avoiding economic strain on other private hire operators. Bolt faces separate VAT-related challenges.
In a significant legal verdict, the Supreme Court has dismissed Uber's appeal aiming to impose a 20% VAT charge on competing taxi services outside of London. This ruling marks a setback for Uber, which sought consistency across the UK in line with its own tax obligations.
Uber argued that rival private-hire operators should be subject to the same VAT regulations it faces, following its 2021 Supreme Court defeat labeling its drivers as workers. However, the Court confirmed that operators are not mandated to enter contracts with passengers outside London, maintaining a regulatory distinction.
The decision was seen as a relief for rival operators, such as Delta Taxis, averting potential economic strain. Additionally, Bolt, another player in the ride-hailing market, faces its own VAT-related challenges. Calls for a new, unified regulatory framework are growing amid these differing legal outcomes.
(With inputs from agencies.)
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