Ride-hailing services will have to apply value-added tax to journeys’ full fares from next year, the UK government announced Wednesday.
Private hire and taxi journeys won’t be included in the Tour Operators’ Margin Scheme starting Jan. 2, 2026 unless those rides are part of “certain other travel services”, according to the UK’s 2025 budget.
Under the regime, VAT is only charged on the margin—the difference between the price charged to the customer and the cost incurred by the travel agent—rather than the full selling price of a cab service.
“This change ensures that VAT is ...
Learn more about Bloomberg Tax or Log In to keep reading:
See Breaking News in Context
From research to software to news, find what you need to stay ahead.
Already a subscriber?
Log in to keep reading or access research tools and resources.