Uber is a company that has been in the news of several scandals. One of these scandals is the tax issue. Uber does not pay taxes in South Africa, which has caused much controversy. The taxi industry in South Africa is highly regulated, and this means that all taxi drivers have to pay their taxes. Uber drivers are not subject to these regulations. This means that the company can be seen as a ‘tax dodger’.
There are many reasons Uber does not pay taxes in South Africa, such as:
-Uber drivers do not have to pay their own income tax on their earnings -The company does not need to register with SARS as they are considered an internet service provider and not a transport service provider (this means they do not need to register with SARS) -The company pays its drivers’ expenses such as fuel, vehicle maintenance and insurance costs.
Should Uber be charged VAT in South Africa?
The SARS has said that Uber should be charged VAT, just like any other transport service, and this would mean a tax of 14% on all fares. .In Belgium, Uber will have to pay a tax of 17% on all fares.
