On Sun, 19 May 2019 11:56:10 +0100, Roland Perry
wrote:

In message , at 10:31:27 on Sun, 19 May
2019, Recliner remarked:
Uber may be forced to levy VAT on its fares, with a potentially huge
retrospective bill.

https://www.thetimes.co.uk/article/p...ikes-after-ube
r-accused-of-taking-taxman-for-1bn-ride-vt8ht588w?shareToken=10f759b81ee
2f668f9176a2c196d3f65

Even if it turns out that individual drivers don't have to charge their
passengers VAT, what about the bills (for use of the platform) from Uber
to the drivers?[1] Although if those turned out to be taxable, it's only
Uber that would stand the retrospective loss. Future commission rates
(and hence fares for users) would likely rise though.

Yes, almost certainly.


Would it mitigate that (a little anyway) if Uber decided to base itself
in Luxembourg like some other online platforms do?

I think they still have to charge and pay UK VAT for trade services in
the UK. Even Uber can't claim they're delivering the service in
Luxembourg. If you, as a private individual, buy something mail order
from Luxembourg, they have to charge you VAT; only if you provide a
VAT number do they not have to do so.


[1] Or is that what they refer to as "gross bookings"?