Hiring services
Hiring a taxi
Taxi companies
Services of a taxi company are exempt when the taxi company acts as a principal when transporting passengers and their accompanying baggage. However, all other services provided to taxi companies such as:
- taxi booking facilities
- radio hire
- taxi vehicle hire*
- and
- general administration charges
are liable to VAT at the standard rate of VAT.
*The reduced rate of VAT may apply to the short-term hiring of a means of transport. See the VAT treatment of the Hiring or leasing of means of transport for further information.
Taxi drivers
The transport of passengers and their accompanying baggage by taxi drivers is exempt from VAT.
Further guidance contains more detailed information on the VAT treatment of taxi drivers.
Next: Hiring or leasing of plant and machinery