Jump to content
House Price Crash Forum
Sign in to follow this  
fru-gal

A single ride in London could wind up costing Uber hundreds of millions of dollars

Recommended Posts

 The way it works with private hire is that the settle (the fee for the radio/computer and/or the car) is subject to VAT but the drivers takings are not. With Uber, that would mean their commission would be liable to VAT but not the rest of the drivers takings. If Uber are not paying VAT on the commission they collect, that is very naughty. If they are, imo they've no case to answer.

Similar happens with shops selling used goods. The VAT is on the profit, not the total price.

Share this post


Link to post
Share on other sites
2 hours ago, John51 said:

 The way it works with private hire is that the settle (the fee for the radio/computer and/or the car) is subject to VAT but the drivers takings are not. With Uber, that would mean their commission would be liable to VAT but not the rest of the drivers takings. If Uber are not paying VAT on the commission they collect, that is very naughty. If they are, imo they've no case to answer.

Similar happens with shops selling used goods. The VAT is on the profit, not the total price.

If you look at an Uber receipt in London, they actually charge you from Uber BV in Amsterdam. I would assume they would then route most of what they charge you as an "admin" or "branding" fee to either an Uber Ireland or Uber Inc Delware possibly via a company in Bermuda or BV. Neither of which will pay much tax, either the Netherlands will say that VAT is only owed if you provide the service in the Netherlands or Uber will charge such a large expense from Bermuda/BVI that the taxable portion i,e the profit will be negligible. Take a look at most multinational receipts and you will see that the company that charges you is often not in the UK - been to a U2 concert recently? Or been hosted by an events management company? 

This will all have been signed off (for a hefty fee) through QC opinions and government re-election campaign deals to make it all perfectly legal. Happens every day, in fact, the company you work for if it has any international presence at all, is probably doing the same thing. Welcome to the world for the last 20 years where corporates use regulatory arbitrage to give themselves more power and money which they use to buy more influence. No wonder corporates love the EU.

Btw any small business can do this, it doesn't cost that much for small companies and is perfectly legal in the current system. Morality is a different question.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   26 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.