Key Facts
- •Bolt Services UK Limited (Bolt) appealed an HMRC decision that the Tour Operators Margin Scheme (TOMS) did not apply to its mobile ride-hailing services.
- •Bolt acted as principal, contracting separately with drivers and passengers.
- •The appeal concerned on-demand rides only, excluding scheduled rides, business accounts, Black Cab rides, and Bolt Tours.
- •Bolt argued that its services were of a kind commonly provided by tour operators and travel agents, preventing competition distortions.
- •HMRC argued Bolt was not a tour operator/agent and that the services were in-house supplies or materially altered/further processed.
Legal Principles
The TOMS applies to services of a kind commonly provided by tour operators or travel agents for the benefit of travellers.
Section 53 VATA 1994 and the TOMS Order
The EU special scheme (Articles 306-310 PVD) aims to avoid difficulties for travel agents from normal VAT rules on multiple services and locations. It applies to services bought in from third parties, not in-house services.
Articles 306-310 PVD, ECJ and CJEU case law (Van Ginkel, Madgett and Baldwin, ISt, Minerva, Star Coaches, Kozak, EC v Spain, Alpenchalets, C)
The special scheme applies even if the supplier isn't a traditional travel agent, as long as the transactions are identical or comparable, preventing competition distortion.
CJEU case law (Madgett and Baldwin, ISt, C)
A single supply of accommodation, even without transport, falls under the special scheme.
CJEU case law (Alpenchalets, C)
Transport services alone might fall under the scheme if accompanied by other travel-related services (information, advice, reservation).
CJEU case law (Star Coaches, Alpenchalets)
The “without material alteration or further processing” requirement in the TOMS Order means the services shouldn't become in-house supplies.
Article 3(1)(b) TOMS Order, Madgett and Baldwin, Kozak
Outcomes
Appeal allowed.
Bolt's ride-hailing services are a kind commonly provided by tour operators/travel agents (passenger transport is a travel service). The services weren't in-house supplies or materially altered. Even if additional elements were needed, Bolt's platform services, customer support, and travel advice suffice.