Dáil Éireann Debate, Tuesday - 30 September 2014
200. Deputy Michael McGrath asked the Minister for Finance the partial and full-year cost to the Exchequer of raising the VAT registration threshold for small and medium enterprises with low turnover from €70,000 to €100,000, €150,000, €200,000 and €250,000, respectively; and if he will make a statement on the matter. [36946/14]
View answerIt is assumed that the Deputy is referring to the VAT registration threshold for goods, which is currently €75,000. On this basis, I am informed by the Revenue Commissioners that it is tentatively estimated that the full year cost to the Exchequer of raising the threshold is as set out in the following table.
|
Change in Threshold |
Estimate Cost Range |
|
75,000 to 100,000 |
€80m - €110m |
|
75,000 to 150,000 |
€310m - €430m |
|
75,000 to 200,000 |
€635m - €880m |
|
75,000 to 250,000 |
€1,050m - €1,450m |
I would point out however, that any increase in the thresholds above the level of inflation would require a derogation from EU VAT law and agreement by all 28 Member States before it could be introduced.
