Finland probes VAT on Uber ride sharing

The tax authorities in Finland have raised concerns that drivers signed-up to UBER, and other ride sharing services, may be evading VAT.

Any driver providing paid-for journeys to Uber users will be potential responsible for charging Finnish VAT at 24%. They will be liable to register for Finnish VAT once their income goes above €10,000, the new Finnish VAT registration threshold for resident traders. As the VAT registration threshold is relatively low in Finland compared to many other EU member states, the tax authorities are concerned that many Uber drivers are in breach of the tax limits.

Currently, UBER is not responsible for calculating the charge for their drivers’ services, so do not have to issue a VAT invoice.