Bolt Faces £190m UK VAT Bill as Supreme Court Refuses Appeal

Bolt faces £190m VAT bill as Supreme Court rejects appeal

Ride hailing platform Bolt has been refused permission to appeal a major tax ruling, leaving the Estonian technology firm facing an estimated £190m VAT bill in the UK.

The decision by the Supreme Court brings an end to a legal challenge brought by HM Revenue and Customs over how the company calculates and pays value added tax on passenger fares.

The dispute centers on whether Bolt qualifies for the tour operators margin scheme. Under this framework, businesses pay VAT only on the profit margin earned between purchasing a service and selling it to the consumer, rather than on the full transaction amount. Applying the scheme allowed Bolt to calculate VAT strictly on its driver commission rather than the total gross fare paid by passengers.

HMRC originally challenged Bolt's eligibility for the scheme in February 2023. While lower tax tribunals initially ruled in Bolt's favour, the Court of Appeal overturned those decisions in June, ruling that the margin scheme did not apply to ride hailing platforms.

Bolt applied to the Supreme Court to challenge the Court of Appeal judgment, but the highest court rejected the application, stating that the case "does not raise an arguable point of law of general public importance which the Supreme Court ought to hear at this time."

Responding to the court's decision, Kimberly Hurd, senior general manager for the UK and Ireland at Bolt, expressed disappointment over the outcome.

"Two courts have already found in Bolt’s favour on this question. We are therefore disappointed that the Supreme Court has refused permission for Bolt to appeal the Court of Appeal’s findings," Hurd said in a statement.

"Businesses need a tax framework that supports a competitive market. This has consequences for fares, for driver earnings and for consumer choice across the sector that earlier rulings provided – supporting the 100,000 drivers that earn through our platform, and the millions of passengers that have depended on affordable and accessible transport," Hurd added.

The UK represents the second largest market for Bolt, which reported revenue of €2.27bn (£1.92bn) in 2025.

Implications for wider ride hailing sector The Supreme Court ruling is expected to influence similar tax disputes across the sector, including an ongoing challenge involving Uber over a £1bn VAT liability currently before the Tax Tribunal.

The Court of Appeal noted in its June judgment that parallel proceedings, including Uber's case, had been awaiting the final determination of Bolt's appeal.

Sue Rathmell, VAT partner at accountancy firm MHA, noted that the refusal to grant an appeal brings the long running legal dispute to a conclusion.

"Under TOMS, VAT is only payable on the operator’s margin rather than the full value of the fare. HMRC has argued for several years that the scheme was never intended to apply to ride-hailing businesses, while operators maintained that they were entitled to use it under the existing legislation," Rathmell said.

"The Supreme Court’s decision to refuse Bolt permission to appeal means HMRC’s victory at the Court of Appeal now stands. Uber’s case was effectively waiting in the wings behind Bolt, so this decision is likely to bring the wider litigation to a close," Rathmell added.

The tax treatment of app based transport services has faced criticism from traditional taxi operators. Black cab drivers previously urged the government to close what they termed a tax loophole, writing to the Chancellor last November to request that tech platforms pay the same level of VAT as traditional taxicab drivers.

HMRC was contacted for comment on the ruling.

Source: City A.M.