White car with yellow taxi sign on roof in city.

ATT responds to consultation on VAT treatment of Private Hire Vehicles

6 August, 2024

The Association of Taxation Technicians (ATT) has responded to a consultation on the VAT Treatment of Private Hire Vehicles. 

This consultation considers the potential VAT impacts of recent High Court judgments regarding who exactly makes the supply in the private hire vehicle (PHV) sector. The consultation invited views on potential government interventions that could help to mitigate any undue adverse effects of VAT changes on the PHV sector and its passengers.

Overall, we believe that the changes to the VAT system proposed would have an unreasonably high cost to the Exchequer and introduce additional complexity into the VAT regime. Targeted interventions to help vulnerable customers deal with any increase in private hire fares as result of VAT being charged would be a more cost-effective approach.