Uber and Careem now have to charge VAT on rides, remit VAT retroactive to when tax first came into effect: The Tax Authority issued a directive to that will require ride-hailing apps including Uber and Careem to charge VAT on the potion of revenue that they take from each ride. Under the directive, “Uber and companies like it” will pay a retroactive VAT of 13% from September 2016-June 2017, and 14% VAT from July 2017 onwards. There’s no change in the tax treatment of drivers: According to a copy of the directive, which ran in Al Mal, the driver’s share of revenue from rides will not be subject to VAT. Uber takes a 20% share of the revenue from each ride.