Uber wins London court ruling over tax on rival apps

In a bid to level the playing field with competitors, Uber took legal action and asked the High Court to rule that private-hire taxi operators enter into a contract with passengers. That would mean ride-hailing apps have to pay value added tax (VAT) at 20% on what they make from each trip. "Whilst it clarifies many key points, there remain questions on VAT and what passengers should pay," they added.

Uber on Friday won a ruling from London's High Court that other ride-hailing apps should also face a 20% tax charge on their profit margins.

The company brought the case following a 2021 decision by the United Kingdom's Supreme Court, which ruled that Uber drivers were workers, which had an impact on the company's tax and other obligations. In a bid to level the playing field with competitors, Uber took legal action and asked the High Court to rule that private-hire taxi operators enter into a contract with passengers.

That would mean ride-hailing apps have to pay value added tax (VAT) at 20% on what they make from each trip. Judge Alison Foster ruled on Friday that companies with a private-hire vehicle operator's licence do enter into such a contract with their passengers.

An Uber spokesperson said in a statement that the ruling "resolves a major inconsistency in the way that rules have been applied for private hire operators across England and Wales". "Whilst it clarifies many key points, there remain questions on VAT and what passengers should pay," they added.

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