Uber’s rival taxi operator out London 20 percent value will not be added Tax (VAT) The UK Supreme Court ruled on Tuesday, accusing its profit margin.
Unanimous decision rejected an appeal UberConfirming that private-mercury operators do not enter the contract directly with passengers.
Uber launched a legal challenge after the 2021 Supreme Court’s decision, which classified his own drivers as workers, who had significant implications for taxes and other obligations.
The ride-haling company announced that all private-taxi taxi operators should be considered a direct constitutional relationship with passengers, which can lead to provoking VAT.
Last year, London’s High court Initially ruled in favor of Uber, suggesting operators will be responsible for 20 percent tax.
However, this decision was reversed court of Appeal In July 2024, private fare operators after a challenge from delta taxi and vesu.
The Supreme Court has now upheld the court’s decision to conclude the legal battle.
The Supreme Court’s decision will clarify the legal status for operators in most parts of England and Wales and can be significant implications for how private fare services are structured and distributed outside London.
Comes after news Uber Announced that it will launch self-driving taxis London From spring 2026.
This has been enabled by the government’s decision to bring further tests of self-driving commercial taxis and “services like bus”. England For the next spring.
In a separate case, Estonian ride-lueling and food delivery startup Bolt defeated the appeal by the Tax Authority of Britain this year HMRC VAT should be paid at about 20 percent about this.
HMRC has been allowed to challenge since then Ruling This bolt is only responsible for VAT on its margin, instead of the entire cost of the journey, in the court of appeal.
