Pa Daly (Kerry, Sinn Fein)
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365.To ask the Minister for Finance to confirm taxi hailing app providers (details supplied) must pay VAT on the commission they charge drivers.[35429/24]

Jack Chambers (Dublin West, Fianna Fail)
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I am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they are exempt from VAT or fall within Annex III of the Directive, in which case lower VAT rates may apply subject to certain rules. Currently Ireland has a standard VAT rate of 23% and two reduced rates of 13.5% and 9%.

The Directive also allows for historic VAT treatment to be maintained under certain conditions. In this regard, Ireland has retained the application of an exemption from VAT on the transport of passengers and their accompanying baggage. However, all other services provided to taxi drivers including services by taxi hailing app providers for commission payments are liable to the standard rate of VAT, currently 23%.

Who accounts for this VAT is determined in accordance with the VAT place of supply rules. Where the taxi hailing app provider is established in the State and providing services in the State, the provider is the person who is required to apply and account for the VAT. VAT exempt businesses, including taxi drivers, will be charged Irish VAT on those services and cannot recover that VAT.

Where the taxi hailing app provider is located outside Ireland and providing services to taxi drivers in the State, the reverse charge rules apply. This means the Irish taxi driver will self-account for the VAT in the State on the supply of the services received. VAT exempt businesses, including taxi drivers, must register and account for Irish VAT on those received services. There is no registration threshold for received services.