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The tax authorities of the United Kingdom have stopped raising dozens of millions of pounds a month in VAT payments in Uber dispute, after a setback in a legal battle related to the European rival of the application of shared trips.
His Majesty income and customs has eliminated his insistence that Super Continue paying VAT for the total cost of trips, instead of alone in the cutting of the company’s rate, until the matter is resolved in the court, according to a footnote of the last note of Uber in the latest quarterly financial statements.
Uber and Bolt argue that they must pay VAT only in their cut of a rate under the same rules that apply to tour operators, in a dispute that has joined financial and legal ambiguity. Navigation on trips In the United Kingdom.
The industry position received an impulse in March when the Superior Court of the United Kingdom for tax He declared that Bolt was covered by the margin scheme of the tour operators, defending a decision of the lower court. HMRC said he was disappointed by the decision and was looking for permission to appeal.
HMRC has demanded that Uber Pay VAT in entire tariffs since 2022, when the company was forced by a ruling of the United Kingdom Supreme Court to start treating drivers as employees. Each quarter, after Uber pays the lowest amount he says, the agency sends an “evaluation” for a total of more than 100 million to cover the difference.
Until now, Uber has needed to pay the evaluations “to continue with the appeal process”, according to successive quarterly presentations. The amount of dispute that has now paid total it £ 1.4 billion. “Payments do not represent our acceptance of evaluations,” he says.
The company’s last presentation on Wednesday, however, revealed that the tax authorities had softened their position. “HMRC has expressed its intention not to enforce evaluations waiting for the determination of the appeal of a competitor in a related matter,” Uber said.
HMRC declined to comment on his position change, citing the confidentiality of taxpayers, but said: “When we appeal an adverse judicial decision, we continue to take measures to protect income to ensure that we can raise the tax due if it is successful.”
Uber declined to comment beyond his presentation.
The company generated approximately 5.3 billion in revenues in the United Kingdom in 2023, according to its most recent public presentations, approximately 18 percent of its world income that year.
Uber began operating in the United Kingdom in 2012, three years after its foundation, but has faced an strident opposition of more traditional taxi drivers. It is subject to a multimillionaire demand from the drivers of the black cabin of London that allege that it obtained incorrectly a transportation for London.
Uber has said that demand was based on “completely unfounded” claims.