Erin McGreehan (Louth, Fianna Fail)
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260. To ask the Minister for Finance whether his Department has assessed the VAT liabilities arising from the use of the reverse-charge mechanism by ride-hailing platforms such as a company (details supplied); and to consider requiring such platforms to register and invoice from within Ireland to ensure compliance and protect taxi drivers.; and if he will make a statement on the matter. [31851/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I 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. This provision applies to businesses across all sectors, including taxi drivers, who receive services from abroad, regardless of their value.

Where a ride-hailing platform is located outside Ireland and is providing services to taxi drivers in the State, the reverse charge rules apply. This means that 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. VAT exempt businesses, including taxi drivers, must register and account for Irish VAT on such received services. Revenue published a Tax and Duty Manual of the VAT Treatment relevant to Taxi drivers in February 2025 and this can be accessed on the Revenue website. Revenue operates a self-assessment system for VAT and monitors tax compliance through a range of risk identification, assessment and evaluation programmes, together with processes that are supported by real-time data analytics and the interrogation of both taxpayer and third-party information. This approach enables Revenue to identify and quantify risk, however, as the ongoing compliance programmes focus on multiple risk areas and a wide range of business sectors, Revenue cannot provide estimates relating specifically to the amount of VAT which relates to taxi drivers and their VAT liability arising from the use of the reverse-charge mechanism.

There is no discretion under the EU VAT Directive for Ireland to require ride-hailing platforms who are not established in the State to register for VAT in the State.