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UK Tax Authority wins dispute with Bolt which could affect Uber

The British tax authority won an appeal on Friday?in a dispute with Estonian 'ride-hailing' and food delivery company Bolt. This ruling could impact Uber's case, which is worth more than PS1 billion ($1.3billion).

Bolt argued that in its PS190million dispute with HM Revenue and Customs, it was liable to charge a 20% value added tax on its'margin' rather than the total fare charged by customers.

The London Court of Appeal, however, ruled in HMRC’s favor and overturned two lower tribunal decisions. Bolt was told by the court that it could not use a tax system originally intended for tour operators and travel agents called Tour Operators Margin Scheme (TOMS).

Uber also has a case that is pending. It was put on hold as Bolt's case progressed. In a ruling issued last year, a London tribunal said that Uber had paid disputed tax amounts of PS1.446 billion.

Bolt's spokesperson stated that the company is disappointed with the ruling, and will "consider all options available to us".

Uber and HMRC didn't immediately respond to our requests for comment. ($1 = 0.7457 pounds) (Reporting by Sam Tobin. William James, Mark Potter and William James edited the article.

(source: Reuters)