Measure

VAT treatment of private hire vehicles

The measure

The government will consult in early 2024 on the impacts of the July 2023 High Court ruling in Uber Britannia Ltd v Sefton MBC.  

 

Who will be affected?

Private hire vehicle operators and taxi businesses.

 

When will the measure come into effect?

The consultation is expected to be published in early 2024. 

Our view

The High Court ruling in Uber Britannia Ltd v Sefton MBC considered the regulation of Uber's business model outside of London, and specifically whether the private hire vehicle operator is acting as a principal when entering into a contractual obligation with the passenger to provide the journey. This in turn has VAT consequences in terms of whether the private hire vehicle operator is acting as a principal or an agent, and therefore the tax base on which VAT should be charged.