Uber Eats Delivery Partners' VAT Obligations

No, as an independent contractor, you are solely responsible for reporting and paying VAT to the Tax Authority.

• Last year, if your annual turnover exceeded €37,500: you should have obtained a VAT identification number from the tax office to which you are attached.
• This year, if your annual turnover is above €41,250: you should have obtained a VAT identification number from the tax office to which you are attached.
• This year, if your annual turnover is expected to cross €41,250, you must monitor it yourself and ensure you are registered for VAT in time.
• If you have not met these conditions, you should be exempt from applying French VAT on your invoices if you benefit from the VAT exemption scheme. \

As soon as you exceed one of the thresholds mentioned above, you will be liable for VAT from the first day you exceed the threshold: it is therefore important to regularly monitor your turnover.

Please note that your annual turnover for VAT is not just the sum total of all services you have sold to Uber, but may also include revenues/income generated from other activities during the year as well.

Your turnover is the sum of the services you sold. On the Uber app these are the delivery services sold.

However, please be aware that for tax purposes you likely need to include the turnover from any other activities you perform outside of the Uber platform too.

We suggest speaking to the tax office and/or your tax accountant to be sure you are calculating your turnover correctly.

Typically, these payments are considered as services provided by you to Uber. If you are VAT registered, these services may be subject to VAT in France.

Please speak with the tax office and/or your tax accountant to ensure you apply the right treatment.

French administrative guidelines (BOI-TVA-BASE-10-20- 40-20) stipulates that tips are not subject to VAT provided they represent amounts that are highly variable and modest in relation to the price of the primary service, and they do not constitute a salary or a salary supplement under labor law.

Consequently, in line with the French administrative guidelines, optional tips received are not subject to VAT and do not have to be included in the VAT reporting. However, a prudent approach could be to consider that these sums are a price supplement paid in direct relation to the service rendered by the Partner, and therefore subject to VAT. However, please note that tips are considered earnings and thus subject to income tax.

We suggest speaking to the tax office, chamber of commerce and/or your tax accountant to be sure you are calculating your turnover correctly.

If you are liable for VAT and your last annual turnover from all your activities exceeds €37,500 but remains below €254,000, and the amount of VAT paid in the preceding year does not exceed EUR 15,000, you should submit an annual VAT return via your professional space on impots.gouv.fr

If you are liable for VAT and your last annual turnover for all your activities exceeds € 254,000, a VAT return needs to be submitted periodically monthly. However you may file quarterly VAT returns when the amount of VAT payable annually does not exceed €4,000. The VAT return should be submitted via your professional space on impots.gouv.fr

Note that additional compliance obligations may exist if you perform other activities. We suggest speaking to the tax office and/or your tax accountant to be sure you are compliant.

You can opt to register for VAT under the general VAT regime (régime réel normal). In such a case you will invoice VAT to your clients and be able to deduct VAT on your professional expenses. To opt for VAT you must send a request to your tax office “Service des Impôts des Entreprises,”.

If you do so, once you receive the VAT number, do not forget to update your Uber profile (by unticking the “I benefit from the VAT exemption scheme” box).

This can all be done online through the government portal.

We recommend speaking to the tax office and/or your tax accountant to be sure you are compliant!

• What is it? Your Tax Summary is a document that provides a detailed breakdown of your earnings through the Uber Eats platform. It’s not an official tax document but could help you or your preferred tax professional prepare your tax return.

• Where is it? You can access your Tax Summaries by logging in to partners.uber.com and clicking on Tax Summary.

• When is it available? Your Tax Summary is issued monthly

• The VAT you have charged appears on the Tax Summary (and on the invoices), but only if you have updated your Tax Profile / Invoice Settings page with your VAT registration details.

For the standard pricing of each delivery, VAT is directly included in your turnover. For example, for a delivery earning you €5:

• If you are not liable for VAT: you receive the full €5.
• If you are liable for VAT: you receive €5, including VAT. Since €4.16 + (20% of €4.16) = €5, you must pay €0.83 (20% of €4.16) to the tax authorities. Therefore, you keep €4.16 out of the €5. \

For exceptional pricing, the situation is different: VAT is calculated in addition to the base rate. For example, for an exceptional bonus earning you €2:

• If you are not liable for VAT: you receive the full €2.
• If you are liable for VAT: you receive €2.40, from which you must pay €0.40 (20% of €2) to the tax authorities. As a result, you keep €2, the same amount as VAT-exempt delivery partners.

Please see the Tax Comments as prepared by KPMG