Uber faces VAT challenge as tax barrister demands receipt

A tax barrister is set to begin legal proceedings that could, according to his own estimates, result in Uber Technologies Inc. being held liable for VAT of almost £20 million based on its smartphone-app-based operations in London alone. Uber maintains that it is not liable because it is not providing transportation services.

“Drivers who use the Uber app are subject to the same VAT laws as any other transportation provider in the U.K.,” an Uber spokesperson said in an emailed statement on March 21. Most drivers are likely to have an annual turnover well below the current VAT threshold of £83,000, so that they do not need to charge VAT …

Read more: My news story for Tax Analysts, 22 March (paywall)