LONDON, July 29 (Reuters) - Uber's ( UBER ) rival taxi

operators will not face a 20% tax charge on their profit margins

outside of London after the United Kingdom's Supreme Court on

Tuesday ruled that private-hire operators do not enter into a

contract with passengers.

Uber ( UBER ) had brought the case following a 2021 decision by the

United Kingdom's Supreme Court that its drivers were workers,

which had an impact on Uber's ( UBER ) tax and other obligations.

The company sought a declaration that private-hire taxi

operators enter into a contract with passengers and London's

High Court ruled in its favour last year.

That decision meant that operators must pay value added tax

(VAT) at 20%, but the ruling was reversed by the Court of Appeal

in July 2024 following a challenge by private hire operators

Delta Taxis and platform Veezu.

Uber ( UBER ) brought an appeal to the Supreme Court, which on

Tuesday unanimously dismissed Uber's ( UBER ) appeal.

In a separate case, Estonian ride-hailing and food delivery

startup Bolt this year defeated an appeal by Britain's tax

authority HMRC about on what it has pay VAT at 20%.

HMRC has since been granted permission to challenge the

ruling that Bolt is only liable for VAT on its margin, rather

than the full cost of the trip, at the Court of Appeal.