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The cost of rides may go up after the High Court ruled that VAT should be 20%.
A judge ruled that private hire taxi operators in the UK have to make contracts with their customers.
Private hire firms may have to add VAT as well.
This year, a judgement found that the drivers of the ride-sharing company should be treated as workers.
Lord Justice Leggatt thought that this ruling meant that a private hire operator such as Uber had to enter into a contract with its customers when it accepted a booking, rather than the passenger only having a contract with the driver of the vehicle.
Unlike most private drivers, the ride-sharing firm is VAT-registered, so it would have to start charging the tax.
The High Court upheld the decision, despite the fact that the company went to the court to challenge it.
The Supreme Court verdict should affect every private hire operator in London.
The judgement was notes by the Transport for London which regulates private hire operators.
Operators will need to consider the court's judgment and take steps to ensure that they comply with it, including considering whether changes to their way of working are required.
The case referred to the Private Hire Vehicles (London) Act 1998 which only applies in the capital, but the App Drivers and Couriers Union, which was a defendants in the case, expect the ruling to be followed by licencing authorities across the UK.
The general secretary of the App Drivers & Couriers Union (ADCU) said that the company was determined to double down on misclassification at the cost of worker rights, passenger safety and the avoidance of VAT.
"Our victory will make misclassification unlawful, transform the London minicab industry for the better and finally eradicate sector wide worker rights abuses."
