UK Supreme Court Rejects Uber’s VAT Appeal

The UK Supreme Court announced the landmark judgment in the legal battle between Delta Taxis, a Liverpool-based taxi firm, and Veezu, a Cardiff-based taxi firm, on one side, and Uber on the other. The pivotal point of the dispute was the different rules applicable to traditional taxi rides and private hire vehicle (PHV) taxi fares outside London, where Uber, in 2022, challenged this, asking that the Act of Parliament be amended to level the playing field.

The Impact of the Supreme Court's Decision

With its request, Uber sought to have the UK government impose a 20% VAT on all private hire fares outside London, including traditional taxi rides. However, two taxi firms, Delta Taxis and Veezu, opposed this and challenged Uber's request before the court.

While the High Court ruled in favor of Uber, the Court of Appeal overruled this and ruled in favor of Delta Taxis and Veezu. This turn of events ultimately led to Uber's appeal before the Supreme Court, which, on July 29, 2025, issued its judgments.

The Supreme Court adopted Delta's argument that legislation dating back to 1976 permits multiple business models under the private hire licensing regime, meaning that not all operators are required to charge VAT. Thus, it denied Uber's appeal, arguing that Uber did not base its claims correctly, and that private hire firms are not legally required to adopt the same model as Uber, nor do they contract directly with passengers. Consequently, a 20% VAT will not be imposed on traditional taxi rides outside London. 

Conclusion

The Delta Taxis and Veezu triumph in this case is a significant win for all other smaller taxi companies, which would, in the case of Uber's win, face the challenge of how to stay competitive and survive on the market. However, the biggest winners are the passengers who will not face more expensive taxi rides. Uber's loss also marks a significant moment for all local companies that have legal disputes with global giants who threaten their business.

Source: The Supreme Court