Does Uber Charge VAT UK?

If you’ve used Uber in the UK recently and noticed VAT added to your fare, you’re not alone. Following a high-profile court ruling, Uber now charges VAT on rides in the UK, changing how the service operates from a tax perspective.

This article explains why Uber began charging VAT, what it means for riders, how VAT is shown on your receipts, and whether businesses can reclaim it.

The Uber Court Case and VAT Implications

In 2021, the UK Supreme Court ruled that Uber drivers are workers, not independent contractors. This had implications for employment rights, but also triggered scrutiny over Uber’s VAT responsibilities.

Previously, Uber claimed it was acting as an agent for drivers, who were individually responsible for VAT if they exceeded the threshold. But following the ruling, HMRC viewed Uber as the principal provider of the transport service – meaning Uber itself became responsible for VAT collection.

Does Uber Now Charge VAT?

Yes. As of March 2022, Uber began adding VAT to fares at the standard rate of 20%. This VAT is included in the total price you see when you book a ride, not added on top.

If you’re a personal customer, this change doesn’t alter the amount you pay significantly – it’s built into the price. But it does affect how the journey is invoiced and may be relevant if you're claiming expenses.

How Is VAT Shown on Uber Receipts?

Uber now provides VAT invoices for rides taken in the UK. These include:

• The total fare

• The VAT-inclusive amount

• The VAT rate (typically 20%)

• Uber’s UK VAT registration number

You can access VAT receipts by:

• Opening the Uber app or logging in online

• Going to the ride history

• Downloading the receipt as a PDF, which shows the VAT breakdown

This makes it easier for businesses to reclaim VAT on legitimate business travel, provided it’s supported by the appropriate documentation.

Can Businesses Reclaim VAT on Uber Rides?

Yes, if you’re a VAT-registered business and the Uber ride was for business purposes, you can reclaim the VAT shown on the receipt as input tax. You must:

• Have a valid VAT invoice

• Ensure the expense was wholly or partly for business use

• Keep a record of the transaction for your VAT return

This doesn’t apply to personal trips or rides without a proper VAT invoice.

What About Uber Eats?

Uber Eats operates under separate VAT rules. Restaurants that use the platform may already be VAT-registered, and VAT may be charged depending on the item, provider and location. Delivery fees and service charges often carry VAT.

Customers ordering via Uber Eats will see VAT applied where relevant and should check their receipts if they’re looking to expense the purchase.

Final Thoughts      

Yes, Uber does now charge VAT on rides in the UK, following a legal and regulatory shift in how the company is viewed for tax purposes. While the price you see includes VAT, the key change is that Uber now acts as the supplier, not just a platform.

For businesses, this means you can now reclaim VAT on eligible journeys – something that was previously less clear. Always download the VAT receipt from the app and retain it for your records. If you use Uber for work, this change could improve the accuracy of your VAT reporting.