VAT Explained for Your Business Rides

A guide for Liftago business account customers

At Liftago, we aim to make both your business rides and your accounting as simple as possible. That’s why we provide a clear explanation of how VAT works for business rides and why the price in the app may differ from the amount on your invoice. Liftago charges are always transparent, with no hidden costs.

Why does the price in the app differ from the invoice?

All rides take place through the Liftago app. For business rides, prices are subject to VAT – the app shows the base fare before tax, and VAT is included on the monthly invoice. This reflects that Liftago, as the service provider, is responsible for VAT, not the driver.

What is a business ride?

A business ride is any ride booked through a Liftago business account. Unlike a personal ride, the legal relationship is not directly between your company and the driver, but between your company and Liftago. Liftago arranges the ride and issues the invoice on your behalf.

How invoicing and VAT work

In the app, you’ll see the base price before VAT. At the end of the month, you receive a consolidated invoice from Liftago, which includes VAT. VAT is therefore handled on the monthly invoice, not per individual ride. This approach ensures clear, fair invoicing and reflects that Liftago is the service provider for business rides.

Why is it set up this way?

Due to the legal relationship: For personal rides, the legal relationship is directly between you and the driver, with Liftago acting only as an intermediary. For business rides, the legal relationship is between your company and Liftago, which arranges the ride for you.