In message , at 12:48:07 on Tue, 21
May 2019, JNugent 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?* 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.* (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.

The theory is that with taxi drivers below the £85k VAT limit, they
can't charge their riders VAT.
--
Roland Perry