About value-added tax (VAT)
Turo is required to collect a value-added tax (VAT) on guests who book a trip with hosts in the United Kingdom. The tax is collected at the UK standard rate whether you’re traveling inside or outside of the United Kingdom.
VAT calculation and display
VAT is calculated at a standard rate of 20% for any electronic services Turo provides. VAT is not applied to the Trip cost. Trip cost is the trip price (the vehicle’s price per day) multiplied by the trip length. We display the tax as a separate line item on the checkout screen so you can view it before you book your trip. We collect VAT on the following services:
- Trip fee - a percentage of the trip price that varies dynamically based on the expected cost of each trip and covers the costs of Turo’s 24/7 support, platform security and upgrades, and vendor fees
- Protection plan - provides £20,000,000 in liability coverage as well as physical damage coverage
- Young driver fee - allows guests 18-24 to book trips on Turo in the UK
- Administrative and processing fees - covers the cost charged by third-party payment processor, if applicable. Administrative and processing fees are only charged on certain post-trip costs.
If you cancel your trip, we’ll refund you all or a percentage of the tax depending on the timing of your cancellation as per our Cancellation policy. If you cancel your trip within one hour of the trip being accepted, we’ll refund the tax applied to the Trip fee. If you cancel more than one hour after the trip is accepted, we won’t refund Trip fee tax. If you cancel before the trip start time, we’ll refund the tax applied to the protection plan you chose and the Young driver fee for the trip, if any.