Bolt Ruled Eligible for Tour Operator Value-Added Tax Relief

Ride-hailing company Bolt is eligible to get the benefit of a value-added tax relief scheme for its on-demand cab services, a UK court ruled Monday.

The on-demand cab rides provided by Bolt Services UK were “services of a kind commonly provided” by tour operators or travel agents and thus qualified for a special program known as the Tour Operators’ Margin Scheme, the Upper Tribunal said.

Under the scheme, VAT is charged on the margin—the difference between the price charged to the customer and the cost incurred by the travel agent—rather than the full selling price of a cab service. ...