HMRC v. Bolt Services UK Ltd (UT/2024/000008)
The Upper Tier Tribunal has today issued its judgement in the above appeal brought by HMRC and the UTT has agreed with the earlier decision of the First-tier Tribunal. The key issue in the case was whether Bolt Services UK Ltd, a ride-hailing platform, should apply the Tour Operators’ Margin Scheme (TOMS) to its services for VAT purposes. Bolt bought in the passenger transport services from self-employed drivers and acted as principal in the onward supply of the transport via its mobile platform to its customers.
The Upper Tribunal dismissed HMRC’s appeal, agreeing with the FTT’s conclusion on both issues. It ruled that the special VAT treatment under TOMS applies where services are provided for the direct benefit of the traveller, without being materially altered, and does not require the service to be part of a broader package.
This decision is an important one for the sector as a whole and we will have to wait see whether HMRC appeal to the Higher Courts. In the meantime, any affected businesses should take advice on their position.
Please contact Jane Stacey and Drew Shrimpton for more information, our VAT Travel team are happy to advise.
