Dáil Éireann Debate, Tuesday - 28 April 2026
441. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance the solution he plans for the potential VAT liability that exists with drivers (details supplied); and if he will ensure that a fair and reasonable repayment schedule is created to ensure that drivers can still afford to work and that the supply of taxi drivers does not fall off a cliff. [30870/26]
Amharc ar fhreagraI am advised by Revenue that VAT is subject to the requirements of the EU VAT Directive with which Irish VAT law is obliged to comply.
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 services platform 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.
I am assured that Revenue is mindful of the challenges businesses are experiencing in the current economic climate. I am further advised by Revenue that its clear preference is always to work with taxpayers experiencing payment difficulties and to identify and agree mutually acceptable payment solutions where possible. They have a proven track record of successfully working with individuals and businesses in agreeing flexible Phased Payment Arrangements to allow for the repayment of debt over a period of time. Revenue encourages taxpayers to engage early when payment difficulties arise and will work proactively with businesses experiencing temporary cash flow difficulties.
