I am advised by the Revenue Commissioners that these services (taxi booking service, hire of radios and the provision of administration) are liable to VAT at the standard rate of 23%. However, the transport of passengers and their accompanying baggage is exempt from VAT under Paragraph 14(3) of Schedule 1 to the Value-Added Tax Consolidation Act 2010. Accordingly, the provision of a taxi service is exempt from VAT. While the provider of a service that is exempt from VAT does not charge VAT on the service they supply, they are also not entitled to deduct, or claim a refund of, any VAT incurred on goods and services used for the purposes of their exempt business. Thus, a person who provides a taxi service does not register for VAT and cannot recover VAT incurred on costs associated with running their business, such as taxi booking services, the hire of radios and the provision of administration. A tax clearance certificate will normally be issued to a person if he/she has made all of the required tax returns to Revenue and has paid all tax known to be due or agreed a payment schedule in respect of such tax debts. If and when a further tax liability is identified or arises, collection proceeds in the normal way.