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Thursday, 14 June 2018

Uber and Careem now have to charge VAT, remit it retroactively

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.

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