Sharing economy and taxation

15 February 2018

In a preliminary process, the European Court judged about the services provided by Uber.

The procedure was started by the initiative of a Spanish Court. The question made by the Spanish Court was to judge an intermediary service, the purpose of which was to connect, by means of a smartphone application and for remuneration, non-professional drivers using their own vehicle with persons who wish to make urban journeys.

The European Court declared this service as a „service provided in the field of transport”, rather than as a „service provided in connection with the information society”. As a result, it is the task of the member states to regulate the conditions of providing such services, for example by requiring official licences.

The European Court also declared that this service is not only an intermediary service which connects the players of the market as it is impossible to use this service without a smartphone application. Furthermore, Uber significantly influences the conditions under which the services can be provided by the drivers (for example declaring the maximum transport fee).

With regard to the increasing role of sharing economy this decision may be precedent in the case of other services as well in the field of sharing economy.

Lili Szenkovits |