On 21/05/2019 12:48, JNugent wrote:
On 21/05/2019 11:26, Someone Somewhere wrote:
On 19/05/2019 12:40, Roland Perry wrote:
In message , at 12:27:00
on Sun, 19 May 2019, Recliner remarked:
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.
It seems that there was a rule change in Jan 2015 which essentially
blocked the Luxembourg-loophole for VAT.
Presumably though the service is provided by the driver and is
un-VATable (unless they earn more than £85k or whatever), but the
service provided by the platform (ie the server) could actually be
abroad and hence charged at their VAT rate?Â* As the service of
matching user to platform doesn't result in any physical delivery of
product then it could legitimately be said to happen offshore.Â* (I'm
not a VAT expert, but I gueess this is the sort of thing they are
basing it off).
With Uber (which I have used only twice, neither time in the UK), the
charges are payable to Uber. If UK VAT applies to their charges in the
UK, it will have to be paid to Uber, presumably at 20% of the charge.
How Uber divide up the charge (ex-VAT) is up to them, but all of it will
be liable to the tax if any of it is.
VAT was never my specialist subject but there are various
misunderstandings of the basics of how it works with intra-EU
transnational business to business supplies. Uber set out quite clearly
how they operate he
https://www.uber.com/en-GB/drive/tax-information/
Note especially the reference to the fact that it's an Uber company in
the Netherlands that supplies the service and to the "reverse charge"
scheme.
All this is contentious. But the UK's not the only EU country that's
accepted it. As have others fiscs. See eg
https://library.croneri.co.uk/acmag_185098
--
Robin
reply-to address is (intended to be) valid