The words “fare”, “earnings” and “payout” can describe different amounts. For VAT, first establish whether you supply the passenger through an agent or supply an operator acting as principal. A city name alone is not a reliable answer.
Documents to compare
- The operator terms that applied during the period.
- The invoice to the passenger and the invoice for your own supply.
- The platform’s service-fee or commission invoice.
- The settlement report showing deductions, cash fares and adjustments.
Why the distinction matters
In an agency arrangement, a fee withheld from a passenger payment does not necessarily reduce the driver’s sales turnover. In a principal arrangement, the driver and operator can make separate supplies. Identify the consideration for your actual supply rather than assuming the passenger’s total fare is always yours.
Contract models and tax rules can change. Keep old terms for historical periods and current terms for new work. The 2026 TOMS change is an operator VAT development; it does not mean every driver crosses the registration threshold automatically.
Put the result into your records
Once the supply is understood, reconcile the invoices to the platform statement and bank payment. Use the income reconciliation guide, then monitor the VAT registration tests. If the documents conflict, ask for a VAT review before filing.
Sources checked 8 October 2026: Taxi Vat · Vat.
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