I propose to take Questions Nos. 163 and 164 together.
VAT is subject to the requirements of the EU VAT Directive with which Irish VAT law is obliged to comply.
I am advised by Revenue that Irish VAT legislation, in compliance with EU VAT law provides that taxable persons who are receiving services from outside the State, in the course of their business, are accountable and liable to pay VAT on?the reverse charge basis. If the business receiving the services from abroad is normally VAT exempt, then it will be required to register for VAT in order that it can properly account for Irish VAT on the received services. These arrangements apply to businesses across all sectors, including taxi drivers, who receive services from abroad, irrespective of their value.
Accordingly, where a ride-sharing operator is located outside the State and providing services to taxi drivers in the State, the reverse charge rules apply. This means the Irish taxi drivers who are customers of that platform are obliged to self-account for the VAT in the State on the supply of the services they have received. Often taxi drivers may not already be registered for VAT, because the provision of passenger road transport services is VAT exempt in Ireland; in such case, the taxi driver is required to?register?so that they can account for Irish VAT on the received services.
Revenue operates a self-assessment system for VAT and therefore the application of VAT on services is primarily a matter for the company or person who is accountable for the VAT. In line with its focus on providing a service to support taxpayer compliance, Revenue provides extensive guidance in relation to VAT on services, particularly through its Tax and Duty Manuals. Revenue has published extensive guidance on its website www.revenue.ie in relation to the different VAT rules that apply where a business receives services from outside the State including on the place of supply rules, reverse charge rule for services, and self-accounting for VAT. This detailed guidance is relevant to businesses across all sectors who need information and guidance on these matters.
To further support compliance specifically in the taxi sector, Revenue published a detailed guidance document in February 2025 explaining how the VAT rules apply specifically to taxi businesses and how taxi drivers can comply with their obligations. This Tax and Duty Manual on the VAT Treatment relevant to Taxi drivers can be accessed on the Revenue website www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Services/vat-treatment-of-taxi-drivers.pdf.
The Deputy asks about the possibility of mandating that all ride-sharing operators must invoice from Ireland as part of their dispatch operator licence. I am advised by Revenue that there is no discretion under the EU VAT Directive for Ireland to require VAT registration here by businesses who are not established in the State and who supply services to businesses in the State. Taxi sector licensing, including the conditions attaching dispatch operator licences, come within the overall policy remit of my colleague the Minister for Transport and within the licensing function of the National Transport Authority.
Revenue’s tax compliance programmes are kept under constant review to ensure that they are focused on the areas of greatest risk where businesses and individuals engage in practices with the aim of not complying with their legal tax and duties payment obligations as well as certain licencing obligations.
In designing and conducting compliance programmes, Revenue utilises all available data and intelligence including returns submitted by taxpayers and third parties, Tax Evasion Reports, social media and other sources. Our compliance activity is carried out under the Code of Practice for Revenue Compliance Interventions. Within the annual planning process, analysis of priorities includes known and growing sectoral risks. Tax risk in the taxi sector, including compliance with VAT and Income Tax obligations, has featured in our shadow economy compliance activity in recent years and will also be included in Revenue’s compliance plans in 2026. Since January 2024, Revenue has completed 55 appraisals in relation to individuals operating in the taxi sector; a further 19 Level 1 compliance interventions have been completed in this period and 8 Level 1 interventions are still in progress.
