Response to Joint Government Consultation on VAT Treatment of PHV

Max Sugarman
Chief Executive

In April 2024, HMRC, HM Treasury and the Department for Transport issued a consultation on VAT applications to Private Hire Vehicles (PHV).

As the VAT treatment of PHVs is currently a key barrier to the growth of the Demand Responsive Transport (DRT) sector, ITS UK has responded to this consultation outlining key evidence as to why an amendment of the current VAT rules on PHVs used for DRT is needed.