Report: Uber Using Tax Loophole To Avoid VAT In The UKUber is avoiding value-added tax (VAT) in the United Kingdom and may be directly hurting its competitors in the country, according to a Wednesday report by Reuters. The ride-hailing giant is said to be deliberately treating its 40,000 British drivers as standalone businesses and is hence able to avoid paying any VAT due to the fact that individual drivers don’t generate enough revenue to be forced to register for VAT, meaning Uber is able to charge VAT-free rates to riders and is putting its rivals at a direct disadvantage. Both mytaxi and Gett — two of the company’s largest competitors in the UK — are paying VAT to Her Majesty’s Treasury, but neither has yet issued a comment on the matter in any official capacity.
Uber is avoiding value-added tax (VAT) in the United Kingdom and may be directly hurting its competitors in the country, according to a Wednesday report by Reuters. The ride-hailing giant is said to be deliberately treating its 40,000 British drivers as standalone businesses and is hence able to avoid paying any VAT due to the fact that individual drivers don’t generate enough revenue to be forced to register for VAT, meaning Uber is able to charge VAT-free rates to riders and is putting its rivals at a direct disadvantage. Both mytaxi and Gett — two of the company’s largest competitors in the UK — are paying VAT to Her Majesty’s Treasury, but neither has yet issued a comment on the matter in any official capacity.
