{"id":628083,"date":"2018-06-25T04:52:54","date_gmt":"2018-06-25T04:52:54","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/taxman-going-after-uber-careem-for-retroactive-vat-payments\/"},"modified":"2018-06-25T04:52:54","modified_gmt":"2018-06-25T04:52:54","slug":"taxman-going-after-uber-careem-for-retroactive-vat-payments","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/taxman-going-after-uber-careem-for-retroactive-vat-payments\/","title":{"rendered":"Taxman going after Uber, Careem for retroactive VAT payments"},"content":{"rendered":"

EXCLUSIVE- This comes as the taxman looks to collect as much as EGP 6 bn from Uber and Careem in retroactive VAT payments for the last two years. <\/strong>Government sources tell us that tax officials should have a final figure within two weeks once they\u2019re done reviewing paperwork filed by each company in the two years since the VAT came into effect. The Tax Authority had issued a directive last week<\/a> that requires ride-hailing apps to begin charging VAT on the portion of revenue they take from each ride. While it left the tax treatment on the drivers\u2019 share of the profit unchanged, the directive mandates ridesharing companies to pay a retroactive VAT of 13% on their own share of revenues from September 2016-June 2017 and 14% VAT on everything from July 2017 onwards.<\/p>\n

Uber may be subject to different tax treatment<\/strong>, the sources said, explaining that unlike Careem, which is licensed as an Egyptian company, Uber operates in Egypt as a foreign entity subject to another country\u2019s tax regime. Uber officials reportedly promised to deliver the documents once they coordinate with their parent company, while Careem officials should sit down with tax officials this week to hand over the paperwork, we\u2019re told.<\/p>\n

In other industry news: Car service companies are reportedly suing Uber for allegedly cutting their drivers.<\/strong> A number of car service companies are said to have filed lawsuits demanding financial compensation from the ride-hailing company after it terminated agreements that had incorporated their drivers in its fleet. Nabil Abdel Nour, the owner of Fourat and Nile Company for Limousine Services and Grand Limousine, alleges Uber let go<\/a> of around 4,000 of his drivers. He claims that his work for Uber over the past 18 months was worth EGP 18 mn. 1st Car is also suing Uber for letting go of around 700 drivers. Uber, which had contracted car service companies when it launched in Egypt, appears to be shedding them as its fleet grows. The move comes as a provision of the recently passed Ride-hailing Apps Act<\/a> forces the two to find a way to incorporate white cabs into their fleets.<\/p>\n

White cab owners, meanwhile, plan to launch by early August a rival ride-hailing app dubbed Professional Taxi<\/strong>, White Taxi Association Head Mamdouh Abdel Hamid tells Al Mal<\/a>. The would-be competitor\u2019s strategy appears to be undercutting Uber and Careem by taking a commission on fares that would be as little as a fifth of what Uber takes today.<\/p>\n","protected":false},"excerpt":{"rendered":"

EXCLUSIVE- This comes as the taxman looks to collect as much as EGP 6 bn from Uber and Careem in retroactive VAT payments for the last two years. Government sources tell us that tax officials should have a final figure within two weeks once they\u2019re done reviewing paperwork filed by each company in the two […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-628083","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"08a48fe8-2b9a-4ffc-8c6a-fc2de2cb311b","order":"0","is_powered_by":true,"section_story_id":"8a3b376b-9173-4e2f-aad4-d49f6b671955","story_type":"1","photo_url":"","photo_position":"above","related_issue":[628075],"teaser":"","voice_url":""},"yoast_head":"\nTaxman going after Uber, Careem for retroactive VAT payments - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/taxman-going-after-uber-careem-for-retroactive-vat-payments\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Taxman going after Uber, Careem for retroactive VAT payments\" \/>\n<meta property=\"og:description\" content=\"EXCLUSIVE- This comes as the taxman looks to collect as much as EGP 6 bn from Uber and Careem in retroactive VAT payments for the last two years. Government sources tell us that tax officials should have a final figure within two weeks once they\u2019re done reviewing paperwork filed by each company in the two […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/taxman-going-after-uber-careem-for-retroactive-vat-payments\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2018-06-25T04:52:54+00:00\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/taxman-going-after-uber-careem-for-retroactive-vat-payments\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/taxman-going-after-uber-careem-for-retroactive-vat-payments\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Taxman going after Uber, Careem for retroactive VAT payments\",\"datePublished\":\"2018-06-25T04:52:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/taxman-going-after-uber-careem-for-retroactive-vat-payments\/\"},\"wordCount\":415,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"EnterpriseAM\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/taxman-going-after-uber-careem-for-retroactive-vat-payments\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2018\/06\/25\/taxman-going-after-uber-careem-for-retroactive-vat-payments\/\",\"name\":\"Taxman going after Uber, Careem for retroactive VAT payments - 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The committee looking at Organisation for Economic Co-operation and Development (OECD) best practices\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":627496,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/04\/taxman-looking-to-collect-vat-on-e-commerce-online-ad-sales\/","url_meta":{"origin":628083,"position":3},"title":"Taxman looking to collect VAT on e-commerce, online ad sales","author":"enterpriseam admin","date":"4 June 2018","format":false,"excerpt":"EXCLUSIVE- The taxman is looking at imposing VAT on online ad buys and e- commerce transactions, sources in government tell Enterprise. The Tax Authority is actively studying the impact of making the online sale of goods and services subject to 14% value-added tax. In parallel, it is looking at ways\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":556273,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/18\/the-taxman-is-coming-for-ride-hailing-apps-in-saudi\/","url_meta":{"origin":628083,"position":4},"title":"The taxman is coming for ride-hailing apps in Saudi","author":"enterpriseam admin","date":"18 October 2021","format":false,"excerpt":"Uber + Careem just got hit with a massive tax bill in KSA. The ride-hailing companies will be charged a combined USD 100 mn in taxes in Saudi Arabia as the kingdom resolves disputes on how to calculate VAT by gig economy firms over the past few years, Bloomberg reports,\u2026","rel":"","context":"In "PLANET FINANCE"","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":629418,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/30\/house-transport-committee-proposes-variable-work-hour-based-tax-system-for-ride-hailing-apps\/","url_meta":{"origin":628083,"position":5},"title":"House Transport Committee proposes variable work hour-based tax system for ride-hailing apps","author":"enterpriseam admin","date":"30 May 2018","format":false,"excerpt":"House eyes complicated tax formula for Uber, Careem? 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