Martin Kenny (Sligo-Leitrim, Sinn Fein)
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70. To ask the Minister for Finance the support his Department plans to provide for taxi drivers to ensure they are not at risk of losing their SPSV licence due to the VAT liability created by platforms using the ‘reverse charge’ mechanism; and if he will make a statement on the matter. [25801/24]

Martin Kenny (Sligo-Leitrim, Sinn Fein)
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71. To ask the Minister for Finance if he has discussed with Revenue the provision of updated guidance on the VAT rates for drivers using platforms operating a reverse charge model; and if he will make a statement on the matter. [25802/24]

Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 70 and 71 together.

The application of VAT to the supply of services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with VAT law, the transport of passengers and their accompanying baggage by taxi drivers is exempt from VAT. However, all other services provided to drivers – such as the provision of taxi booking facilities on a platform – are liable to VAT at the standard rate, currently 23%. Who accounts for this VAT is determined in accordance with the VAT “place of supply” rules. In general, for business-to-business (B2B) supplies of services, the place of supply is the place where the business receiving the services is established; therefore, where a taxi driver established in Ireland is in receipt of services, the place of supply is Ireland.

Generally, where the business supplier is located outside Ireland, they will not charge Irish VAT on their services. Instead, under VAT law, the Irish business customer is required to self-account for the VAT in the State. This means that VAT exempt businesses who receive supplies of services from outside the State are required to register and account for Irish VAT on those services. This requirement applies to taxi drivers who receive booking services via a platform from outside the State.

The VAT rates applicable to taxi booking services can be found on the VAT Rates Database which is published on the Revenue website. I also understand that Revenue has published extensive guidance on 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 not specific to taxi drivers but is relevant to businesses across all sectors who need information and guidance on these matters. However, Revenue will keep this business sector under review and will publish further guidance, if appropriate.

It should be noted that the regulation of the small public service vehicle (SPSV) sector, including SPSV licensing, is a matter for the independent transport regulator, the National Transport Authority, under the provisions of the Consolidated Taxi Regulation Act 2013 and 2016.