Uber is able to escape VAT by making use of a gap in how tax is gathered for cross-EU company sales. This stems from the fact that it classifies its 40,000 UK drivers as independent entities, each too small to register for VAT. Read on to learn about VAT on UberEats, reverse charges and more.
What does this loophole mean?
This loophole appears in other European nations as well, but it is most critical for Uber in the United Kingdom, where it conducts a third of its European operations. Other EU nations have enacted stricter regulations to close or decrease the gap.