LONDON, July 15 (Reuters) - Uber's ( UBER ) rival taxi

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

outside of London after a court on Monday overturned a ruling

that private-hire operators 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

on Monday following a challenge by private hire operators Delta

Taxis and platform Veezu.

Delta's lawyer Layla Barke-Jones, from the firm Aaron &

Partners, described Monday's ruling as "a victory for the taxi

industry and all those who depend on it".

"The collective aim for us and our client in this case has

always been to protect passengers and taxi firms alike, so the

news customers outside London won't have to have VAT forced upon

them will bring a collective sigh of relief," Barke-Jones said.

An Uber ( UBER ) spokesperson said: "We will review the judgment of

the court in detail and consider our next steps."

The Uber ( UBER ) spokesperson added that "requirements for operators

are now inconsistent between London and most of the rest of

England and Wales".

Veezu did not immediately respond to a request for comment.

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

startup Bolt last year won an appeal against Britain's tax

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

HMRC's appeal against the ruling that Bolt is only liable

for VAT on its margin, rather than the full cost of the trip, is

due to be heard in November.