VAT Advice from Free Now

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Junk mail from Free Now:

VAT support for Uber drivers

Dear driver partners,

We are aware of growing concerns from drivers regarding their tax compliance, following the recent public confirmation from Uber that drivers on their platform must pay VAT on their commission.

For clarity, when using platforms based outside Ireland, such as Uber, you must account for VAT on booking fees. This means reporting VAT on the commission paid to the platform, as confirmed by both Uber and Revenue.

We know this has come as a shock to many drivers, given this differs from your contractual arrangement with Freenow, where you are not required to pay any VAT for trips completed with us.

To support you, Freenow has partnered with MyTaxiTax.ie, an accountancy provider supporting taxi drivers with their VAT registration and payments process. They have developed a specialist calculator to help drivers understand their potential VAT liabilities to Revenue, and have agreed to provide a completely free VAT return service for the first 50 drivers to sign up saving you €150.

As a reminder, this is only necessary if you also complete fares with Uber.

Use code: FREENOWFREEVAT

With over 20 years of experience, their team of qualified accountants understands the day to day challenges drivers face and offers clear, practical support with VAT registration and returns.

Calculate your VAT and sign up here

*As a reminder, Freenow is not a tax advisor. Drivers should seek independent professional advice regarding their individual tax circumstances and compliance obligations. Freenow accepts no liability for any services provided by MyTaxiTax.ie.

At Freenow we act as an intermediary between taxi-and-private-hire-vehicle-drivers, company owners, providers of other mobility solutions, and you as a passenger or rider.

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We know this has come as a shock to many drivers, given this differs from your contractual arrangement with Freenow, where you are not required to pay any VAT for trips completed with us.

The cunts have been charging me VAT @ 23% since I first signed up over a decade ago. WTF?

[Rat Catcher]

Opened a chat in the help section as follows:
I got an email that says I don't have to any VAT on trips completed with Free Now. I note that you have been charging me VAT since I signed up over a decade ago so if I don't have to pay it how do I opt out and can I have a refund of what I've already paid?

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Interim reply:

Thank you!

You’ve reached us outside of our business hours.  We’ll notify you as soon as we’ve reviewed your request.

You can close this chat for now.

If you need help with another topic, please start a new conversation.

Have a great day!

[Belker]

@ Rat Catcher;
I don't much understand VAT or Tax in general, so if'n your posting on these issues then please keep it ultra simple fer the Thick-O's like me.

[John m]

Ouick explain .Free Now charge you 15% included in that Service is booking Card invoices .As a Service it is liable to VAT .The VAT is included in the 15% comission deducted at source ,,


Now UBER are Registered overseas Belgium .They do not by Law have to deduct VAT at source but as the Purchaser of the service you are liable to pay the VAT for the booking Services you purchased from UBER .So to satisfy your VAT payments on services you need to Register to pay VAT on any services you purchased from UBER .Do not forget the Apps provide a Booking SERVICE not a taxi fare just Booking Services .which are VAT RATEABLE .Big Question for some dtivers is back dating your VAT payments on ALL UBER SERVICES purchased over the years .

EG if you paid 20 K over the years in Comission to Uber you have a VAT liability on 20K .


When purchasing services from abroad, Irish VAT is generally payable under the "reverse charge" mechanism if the recipient is a business (B2B). The supplier does not charge VAT, but the Irish business must record it, potentially paying at the standard Irish rate (23%) and claiming it back, making it net neutral.


NB .The last line is interesting .Can we offset it against other Vat like on Fuel or services ?



Business to Consumer (B2C): For B2C services, VAT is typically charged by the supplier at their local rate, though exceptions apply (e.g., digital services, consulting) where Irish VAT may be required.

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NB .The last line is interesting .Can we offset it against other Vat like on Fuel or services ?

No.

[John m]

NB .The last line is interesting .Can we offset it against other Vat like on Fuel or services ?

No.

Do tell I think we discussed this over Coffee and toasted ham and Cheese .You say taxi industry cannot claim back VAT BUT we were never previously required to Register for VAT .Have UBER opened a Pandoras Box ? I think one of the Ultra Professional Rep Bodies should take legal advice on behalf of their members .Davies or Goodbody or Arthue Andersons should be able to write a report for a few Grand .

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Registering makes no difference. You could always elect to register and we would have done so if there was any advantage to be gained. To reclaim VAT you must supply goods or services that are subject to VAT. We don't.

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Another interim reply from the Free Now depot:

Hi Stephen! My name is [removed] and I'll be helping you today!

I have just reached out to the local team for them to advise on this particular matter. Once I have their feedback on this, I will get back to you right away.

Thank you for your time and understanding! Have a great day!