Policy paper
VAT: supply of certain passenger transport services through agents
This tax information and impact note is about changes the VAT treatment of passenger transport services supplied by private hire vehicles or taxis through an agent.
This measure changes the VAT treatment of passenger transport services supplied by taxi or private hire vehicle through an agent from January 2028.
The services will be treated as supplied by the agent rather than the driver. If the agent is registered for VAT, they will have to charge VAT on the full value of the fare.
This will only apply to businesses with annual turnover above a specified threshold. Businesses below this threshold will not be affected.