Key facts
- Bolt faces a UK VAT bill of around £190 million.
- The ride-hailing app argued it was an agent connecting drivers to passengers, not the seller of the ride.
- The court ruled that Bolt must pay VAT on the entire fare, not just its service fee.
- The ruling was made in the Court of Appeal by the UK's tax authority, HMRC.
- Bolt has been refused permission to appeal the decision.
Ride-hailing platform Bolt has been refused permission to appeal a UK court decision that requires it to pay value-added tax on its entire fare. The UK's tax authority, HMRC, brought the case, arguing that Bolt should be treated as the seller of the ride, not merely an agent connecting passengers to drivers. For years, Bolt had paid VAT only on the service fee it retained from each journey, contending that the drivers were the actual sellers of the ride. The court disagreed, ruling that minicab apps must calculate and pay VAT on the full fare. This distinction means Bolt now faces an estimated VAT bill of around £190 million. The case highlights a potential gap between older VAT policies and the business models of modern technology platforms.