Bolt set for £190m VAT bill after legal defeat
Ride-hailing platform Bolt has been refused permission to appeal a case brought by HMRC over how it calculates and pays its VAT. This follows HMRC winning an appeal in June against the Estonian tech giant over its VAT payments and calculations, overturning earlier decisions that had ruled in Bolt’s favour. The tax authority brought the [...]
Bolt, the ride-hailing platform, faces a potential £190 million VAT bill after losing its appeal against HMRC. The UK tax authority won an appeal in June, overturning previous decisions that had ruled in Bolt's favor. The dispute centers around Bolt's eligibility to use the tour operators' margin scheme (TOMS), which would only require the company to pay VAT on its commission from fares, rather than the entire gross fare.
HMRC argued that Bolt did not qualify for this scheme, and the Court of Appeal supported this decision. Bolt had sought to appeal to the Supreme Court, but the court refused to hear the case, stating that it did not raise an arguable point of law of general public importance. Bolt's senior general manager, Kimberly Hurd, expressed disappointment with the Supreme Court's decision, emphasizing the impact on drivers and passengers.
The case may bring the Uber VAT battle to a close, as other cases, including Uber's, are awaiting the outcome of Bolt's case.
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