Uber Says it Paid UK Tax Authority £386 Million Over VAT Dispute

Uber Technologies Inc. said it paid £386 million ($490 million) to British tax authorities as part of a dispute over how the ride-sharing applies value-added tax to trips made in the UK.

HM Revenue and Customs is challenging Uber’s use of the Tour Operators Margin Scheme, which is designed to simplify tax for travel agents and lets tour operators pay VAT on profit rather than on the price of a service. The program applies to travel services which are “bought in from another person and resupplied without material alteration or further processing.”

Uber is appealing the decision but has to ...