Readers of our VAT blog pieces will remember our commentary on the Uber case in 2023.
HMRC has now opened a consultation from the 18 April to the 8 August 2024 on the potential VAT treatments for taxi operators in the future. The details of the consultation can be found here.
Changes in the VAT treatment of Private Hire Vehicle Operators (PVH) would not be fiscally neutral for HMRC – the consultation suggests a possible cost to the Exchequer of £750m per year – so not an insignificant value and indeed, as the licensing of providers is a devolved issue for the UK, this adds some complexity.
However, VAT clarity is required following the case which hinges on the role of the operator as an agent or a principal in the supply to the passenger.
All parties with an interest – whether as suppliers, users or representative bodies – are being encouraged to contribute to this consultation.
If this news prompts a question on the VAT treatment of the activities your organisation undertakes, then do contact the Indirect Tax team below.
This article is for information only and specific advice should always be taken.
