Thousands of taxi drivers may be at risk of losing their licences following confusion over VAT rules. 

Drivers have discovered they may have unexpected liabilities - following the introduction of new taxi apps. 

They describe the issue as a big worry for drivers all around the country.

“In most cases, taxi app providers have structures in place to ensure that the VAT payment is not transferred to drivers who accept trips via their chosen app,” Taxi Drivers Ireland  has said. 

“Other apps are registered for VAT in Ireland to provide services from Ireland; as a result, non-VAT registered taxi drivers do not have to register for VAT or file VAT returns.” 

Taxis in line at night at Temple Bar. Image: Ian Pilbeam / Alamy Stock Photo

Derek O’Keeffe, founder of Taxi Drivers Ireland, is urging the Government, Revenue and the NTA to clarify the situation. 

“At this time, we need urgent clarification from the NTA and to investigate the situation because we have taxi drivers around the country who have been working for this platform for a number of years,” he said. 

“At this current point in time, they don’t know where they stand.” 

The standard VAT rate in Ireland is 23%; it is charged at 13.5% for certain items such as certain fuels or art work. 

9% VAT is charged on items such as newspapers, cinema tickets or certain musical performances.

Main image: A line of taxis in Dublin city centre. Picture by: Artur Widak/NurPhoto

Reporting by James Wilson and Teena Gates.