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Noonan opens Uber centre and denies VAT claims

January 12, 2016

VAT news from Ireland: 

Some 100 people are already employed at Uber’s centre in Limerick, which was officially opened by Mr Noonan yesterday. The new jobs are to be created over the next 12 months.

Reacting to a claim by Dublin Fianna Fáil councillor Jack Chambers that Uber does not pay VAT on its fares in Ireland, Mr Noonan said the firm is tax compliant.

“The position [is] that Uber is an international organisation, but it is an American company and it is incorporated in the United States. It’s international – they are operating in 360 cities, and Europe and places further afield. They do their business out of the Netherlands, and they are tax compliant in their activities in the Netherlands for their international business outside of the United States,” said Mr Noonan.

“But, of course for their activities in Limerick, they’ll have to be tax compliant in Ireland, and the profits they make will be subject to the 12.5pc tax in Ireland.”

He also claimed taxi drivers don’t earn much money from Uber and are below VAT thresholds.

“In terms of the drivers, they don’t earn a lot of money from Uber – it’s a bit of extra money – so they would be well below VAT thresholds,” said Mr Noonan.

“On the other hand, if it’s somebody in the taxi business, there would be a VAT liability and they would be liable to pay the same as anybody else who exceeds the VAT thresholds.”