Ride-hailing firm, Uber, is “defending itself vigorously” in an attempt to be exempt from paying VAT in the UK.
This year’s accounts published on 8 October 2019 show Uber London Limited (ULL) detail their concerns, which include a possible £1billion tax bill should the firm be classified as a ‘transportation’ company. The tech giant has always classified itself as a software company, which is exempt from VAT.
Based on the accounts submitted, being classified as a transportation provider would result in 20% VAT on gross bookings or on the service fee that ULL charges drivers, both retroactively and prospectively.
Accounts filed state “The Uber Group believes that the position of HMRC and the regulators in similar disputes and audits is without merit and is defending itself vigorously.”