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Is there VAT on taxi fares?

Is there VAT on taxi fares?

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Do taxi's charge VAT? or are taxi fares exempt as transport?

Replies (17)

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By BKD
13th May 2014 08:03

They're not exempt

(Assuming you're talking about a standard cab or mini-cab). Whether VAT is charged or not will depend on the VAT status of the provider.

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By The Innkeeper
13th May 2014 08:40

@bkd

spot on

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RLI
By lionofludesch
13th May 2014 10:43

Nightmare

Yeah - they're difficult to work with.  You never get much documentation.

Is there a VAT number on the receipt ?  Yes or no ?  That's the only question, really.

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By Peter Kilvington
13th May 2014 12:20

More complete answer

Can someone provide a more complete answer please from the point of view of the taxi firm.

It is just out of general interest but what is the VAT status of transporting children to school under contract with the local authority or education authority and what is the VAT status when transporting disabled passengers.

I only ask as some years ago I had an prospect who ran a taxi firm who had failed to register for VAT and his current accountant refused to do so (I think he was scared of the potential penalties and buried his head in the sand).  Never got to the point of researching these points though as he threatened to sue the accountant and may well have ended up doing so.

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RLI
By lionofludesch
13th May 2014 12:26

Number of seats

It's the number of seats that matters, not the age of the passengers.  Twelve or more to zero rate.

So, unless you've a very big car, taxi fares are always standard rated (subject to being registered, obviously).  Is the turnover more than £81000 ?

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Replying to andy.partridge:
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By cbp99
14th May 2014 11:31

.

lionofludesch wrote:

It's the number of seats that matters, not the age of the passengers.  Twelve or more to zero rate.

Is it not ten more?

 

Edit - should say "ten or more"

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RLI
By lionofludesch
13th May 2014 13:17

Gosh ... has it changed ?

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Replying to lionofludesch:
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By DMGbus
26th Sep 2017 08:24

VTRANS020300 - Zero-rating of passenger
transport: Position before 1 April 2001
Prior to 1 April 2001 it was a requirement that vehicles, ships or aircraft were designed or adapted to
carry twelve passengers rather than the current ten. This number was reduced to bring the VAT Act in
line with other Government legislation, namely the Public Passenger Vehicle Act 1981 and the Vehicle
Excise and Registration Act 1994.
The legislation refers to vehicles, ships and aircraft. Given the context, and the legal reference to ships
and aircraft. the term vehicles must be taken to be referring to land transportation. Certain elements of
the transport law and policy may apply only to vehicles or to ships or to aircraft so it is important to note
this distinction. However, in other parts of the VAT Act 1994 and in the Principal VAT Directive 2006/112
vehicles may be used as a generic term including ships and aircraft.

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Replying to DMGbus:
By mrme89
26th Sep 2017 08:51

Did you sleep alright?

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Replying to mrme89:
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By DMGbus
26th Sep 2017 09:06

This came up as a trending post and was of interest.
I saw that your question wasn't answered.
So I answered your question - rules changed some years before your question.

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RLI
By lionofludesch
26th Sep 2017 09:20

It was my question but trending after three years?

I'm quite proud of that.

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Replying to lionofludesch:
By mrme89
26th Sep 2017 09:28

Strgeg must your second account. Naughty.

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Replying to mrme89:
RLI
By lionofludesch
26th Sep 2017 09:33

Strgeg's question was answered.

Mine wasn't.

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Replying to lionofludesch:
By mrme89
26th Sep 2017 09:37

You've had a lot of patience waiting all this time for the answer.

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Replying to mrme89:
RLI
By lionofludesch
26th Sep 2017 09:48

Not really. I just lost interest.

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Replying to mrme89:
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By andy.partridge
26th Sep 2017 10:25

I've been waiting 3 years for the misplaced apostrophe to be corrected.

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Replying to andy.partridge:
By mrme89
26th Sep 2017 10:41

'm'e 't'o'o

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