Why Uber may consider a VAT principality appeal to the Supreme Court following court ruling

Uber’s VAT principality legal battle may not be over as the ride-hailing giant must weigh up a potential appeal to the Supreme Court following the significant ruling by the Court of Appeal.

The court decision this summer overturned a High Court judgment that had required private hire vehicle operators to enter into contracts with passengers when accepting bookings.

This ruling came as a relief to private hire operators like Veezu Holdings Ltd and Delta Merseyside Ltd, who successfully challenged the initial decision, which had been supported by Uber Britannia Ltd. The outcome allows operators to continue their current business model without the obligation to contract directly with passengers at the time of booking.

As a result, the responsibility for VAT shifts to the individual drivers rather than the operators—a substantial change with far-reaching implications for the industry. Should Uber decide to pursue this route, the decision from the Supreme Court on whether to hear the appeal could come as soon as “mid-August”.

Speaking to TaxiPoint, Layla Barke-Jones, Dispute Resolution Partner at Aaron & Partners and representative for Delta Merseyside Ltd, commented on the next steps. Barke-Jones said: “It’s difficult to say, because that decision rests with Uber. They have been refused permission to appeal at the Court of Appeal but can still request permission from the Supreme Court. We anticipate that they will seek permission to appeal, and we should find out if that is the case by mid-August.

“Following this, there will be a period while the Supreme Court, the highest court in the land, considers whether it will allow

Uber to present its case before it.”

As the highest court in the land, the Supreme Court’s involvement would be the final chapter in this long-running legal battle, which continues to shape the landscape of private hire operations across the UK.