Hiring services

Hiring a taxi

When a passenger hires a taxi, the taxi company is supplying a transport service to the passenger and their accompanying baggage. This service is exempt when the taxi company acts as a principal in the supply. 

All other services provided by taxi companies such as:

  • taxi booking facilities
  • radio hire
  • taxi hire
  • and
  • general administration charges

are liable to Value-Added Tax (VAT) at the standard rate of VAT.

Next: Hiring or leasing of plant and machinery