- VAT Exemption for Passenger Transport: Taxi drivers providing passenger transport services are exempt from VAT, meaning they do not charge VAT on fares and cannot reclaim VAT on related costs.
- VAT Registration Requirements: Taxi drivers are not required to register for VAT if they only provide exempt services. However, if they receive taxable services from abroad, they must register and account for VAT in Ireland, regardless of the service value.
- Taxable Services and Online Platforms: Services provided to taxi drivers, such as radio hire, vehicle hire, and online booking facilities, are subject to standard VAT rates. If these services are provided by foreign entities, taxi drivers must self-account for VAT under the reverse charge mechanism.
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