Taxis: VAT

Treasury written question – answered at on 23 October 2023.

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Photo of Daniel Zeichner Daniel Zeichner Shadow Minister (Environment, Food and Rural Affairs)

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of the application of VAT to taxis and licensed minicab journeys on vulnerable people who need to use taxis and private-hire vehicles.

Photo of Victoria Atkins Victoria Atkins The Financial Secretary to the Treasury

The VAT rules for mini cab services and taxis remain unchanged. Fares have always been subject to VAT when provided by a VAT registered business who is providing those services as principal. The Government is carefully considering the potential impact the Uber Britannia Limited v Sefton Borough Council (2023) EWHC 1975 case will have on the sector as a whole, including passengers.

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