Traders making supplies in the State are obliged to register for VAT where certain turnover thresholds are exceeded or are likely to be exceeded in any continuous period of 12 months. The current thresholds, which were introduced in the Finance Act 1994 with effect from 1 July 1994 are €25,500 in the case of a person supplying services and €51,000 for persons supplying goods. The first threshold also applies to persons supplying a combination of goods and services or goods chargeable at the 13.5% or 21% VAT rates which are produced from zero-rated materials.
Businesses with a turnover below these thresholds can, of course, register for VAT. Those businesses in the service sector in particular frequently choose to do so for commercial reasons. It is not customary for me to comment on any possible changes to thresholds which may, or may not, arise in the context of the forthcoming budget.