UBER · 10-Q · 2026Q3 · Full report

UK VAT Assessment and Dispute

Uber Technologies, Inc · 2026-11-04 · Importance 59 · Surprise 60 · Contradicted

A UK legislative change effective January 2, 2026, barred Private Hire Operators from applying the VAT Order 1987 to supplies made on or after that date, and Uber UK ceased applying the order. HMRC assessments dispute Uber’s use of the order from March 2022 through December 2025 and total approximately $3.4 billion (£2.6 billion). Uber has paid $1.9 billion and expects to pay the remaining $1.5 billion to proceed with its appeal, without accepting the assessments; it is awaiting Tax Tribunal hearing dates and says the outstanding payments would reduce operating cash flow but not results of operations. Uber also says application of UK VAT rules after the legislative change involves significant judgment and could be challenged by HMRC.

Key facts

• Uber paid $1.9 billion (£1.4 billion) and expects to pay the outstanding $1.5 billion (£1.2 billion) of assessed amounts to proceed with the appeal process; the payments do not represent acceptance of the assessments. source
• As of September 30, 2026, HMRC assessments disputed Uber's application of the VAT Order 1987 for March 2022 through December 2025 and totaled approximately $3.4 billion (£2.6 billion) in unpaid VAT. source
• Effective January 2, 2026, UK Private Hire Operators could no longer apply the VAT Order 1987 to supplies made on or after that date, and Uber UK ceased applying it after January 2, 2026. source
• Uber plans to vigorously defend its VAT Order 1987 application for March 2022 through December 2025 and is waiting for the Tax Tribunal to provide hearing dates. source
• The application of VAT rules to Uber's UK operations following the January 2, 2026 legislative changes involves significant judgment and could be challenged by HMRC. source
• Uber records payments made in 2023 through 2025 as a receivable in other assets because it believes it will succeed in its appeal and receive the full amount of those payments back with interest after the appeals process. source
• Payment of the outstanding VAT assessment balance would decrease Uber's operating cash flow and would have no impact on its results of operations. source
• Uber UK began remitting VAT under the VAT Order 1987, which allows VAT to be remitted on a calculated margin rather than on Gross Bookings. source

Impact estimates