UK tax authority wins appeal in dispute with Bolt that could affect Uber
Overview of the Bolt and HMRC Tax Dispute
LONDON, June 12 (Reuters) - Britain's tax authority on Friday won an appeal in a dispute with Estonian ride-hailing and food delivery company Bolt, a ruling that could affect rival Uber's similar case worth over £1 billion ($1.3 billion).
Background of the Dispute
Bolt had argued in its £190 million dispute with HM Revenue and Customs that it was liable to charge value added tax of 20% on its margin, rather than on the entire fare charged to customers.
Court of Appeal Ruling
Decision Details
But London's Court of Appeal ruled in HMRC's favour, overturning two lower tribunal decisions. The court said Bolt should not be allowed to use a tax scheme originally designed for tour operators or travel agents, called the Tour Operators Margin Scheme (TOMS).
Implications for Uber
Uber has a similar case pending, which has been on hold while Bolt's case proceeded. A London tribunal said in a ruling last year that Uber had deposited disputed tax sums of £1.446 billion.
Reactions to the Ruling
Bolt's Response
A Bolt spokesperson said the company was disappointed by the ruling and "will consider all options available to us".
HMRC's Response
An HMRC spokesperson said: "We welcome the Court of Appeal's judgment, which confirms our position on the VAT treatment of private hire vehicle operator services of passenger transport."
Exchange Rate Information
($1 = 0.7457 pounds)
Reporting Credits
(Reporting by Sam Tobin. Editing by William James and Mark Potter)
