UBER · 10-Q · 2026Q2 · Full report
UK VAT Assessment and Dispute
Uber Technologies, Inc · 2026-08-05 · Importance 39 · Surprise 42 · Contradicted
Uber recorded payments made to HMRC for 2023 through 2025 as a receivable because it expects to prevail on appeal and recover the amounts with interest. Uber expects additional assessments for 2023 through 2025, although HMRC has indicated it will not enforce assessments pending a competitor’s related appeal. Payments of future assessments would reduce operating cash flow without affecting results of operations. Uber is defending its application of the UK VAT Order 1987 for March 2022 through December 2025, while the January 2, 2026 legislative changes create additional judgment and potential HMRC challenge risk.
Key facts
- Uber paid multiple HMRC VAT assessments totaling approximately $1.8 billion (£1.4 billion) for unpaid VAT for period March 2022 to September 2024 and has proceeded to appeal after payment; payments do not represent acceptance of assessments source
- Effective January 2, 2026 UK Private Hire Operators are no longer permitted to apply the VAT Order 1987 and Uber UK ceased applying the VAT Order 1987 after January 2, 2026 source
- HMRC has expressed their intention to not enforce assessments pending the determination of the appeal of a competitor on a related matter. source
- The application of VAT rules to our UK operations following the January 2, 2026 legislative changes involves significant judgment and could be subject to challenge by HMRC. source
- For periods March 2022 to December 2025, we plan to vigorously defend our application of the VAT Order 1987 and are waiting to obtain hearing dates from the Tax Tribunal. source
- We believe that we will be successful in our appeal, upon which, the full amount of our payments will be returned to us with interest upon completion of the appeals process. source
- We expect to receive additional assessments related to the period 2023 through 2025. source
- Payments made in 2023 through 2025 are recorded as a receivable in other assets on our condensed consolidated balance sheet. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -2.7% | Uber paid multiple HMRC VAT assessments totaling approximately $1.8 billion (£1.4 billion) for unpaid VAT for period March 2022 to… |
| liability | negative | contingent | — | Effective January 2, 2026 UK Private Hire Operators are no longer permitted to apply the VAT Order 1987 and Uber UK ceased applying the… |
| liability | positive | contingent | — | HMRC has expressed their intention to not enforce assessments pending the determination of the appeal of a competitor on a related matter. |