Uber will have to pay the British tax authorities $ 700 million

Uber has announced that it will pay British tax authorities 615 million pounds (about $700 million) in back-dated value-added tax linked to a court ruling establishing a contractual relationship between the platform and its drivers.

In December 2021, London’s High Court ruled that vehicle platforms operating in the British capital were not, as Uber argued, merely “agents”, but had a direct contractual relationship with customers.

The decision came on the heels of a ruling by the British High Court, in February 2021, that found that the drivers responsible for the booking platforms were already paid workers and not self-employed.

The Supreme Court ruling had the effect of forcing ride-sharing apps to incorporate value-added tax into their wages.

Then the UK tax authorities demanded a value-added tax from Uber.

Apart from its results for the third quarter of 2022, published on Tuesday, Uber indicated that an agreement was reached between the two parties on Monday, October 31, to pay 615 million pounds to British tax authorities before the end of this year. general.

The group explained that these expenses will not have a “significant impact” on its accounts. “We have sufficient reserves” related to this file, he said in a press release.

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