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International VAT

Facts: A company incorporated in Singapore (""S Co."") takes taxi
bookings through a live chat done by its employees located in
Singapore from customers who are based in the UK. S Co then engages
freelance UK taxi drivers to do the job. The contract for the ride is
between the customer and the driver acting principal parties. S Co
takes the booking as an agent on the behalf of the driver. The
customer pays £10 for each ride to the taxi driver. The taxi driver
pays £3 commission to the Singapore company for the job provided.

Question: Is UK VAT applicable on commission paid by the taxi driver
to S Co.? If yes, how much? Kindly suggest



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By tom123
17th Aug 2017 07:08

Uber would contend that each driver is trading on their own account, and, in all likelihood, therefore below the vat registration limit.

This is the subject of legal challenge at the moment, if I recall.

EDIT - just re-read the question. Place of supply of services for the booking app would apply.

I want to say that should be where the drivers are - but others (Portia?) will be able to be more definitive.

Thanks (1)
to tom123
17th Aug 2017 07:35

So Place of supply of Services is UK. So kindly suggest whether drivers are liable to pay UK VAT on the commission which is £3 to Singapore company. If yes then how much ?


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By tom123
to Rajat Srivastava
17th Aug 2017 08:58

The Singapore company should therefore be registered for VAT in the UK, and charging UK vat.

The rate would be the standard 20%.

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