Dáil Éireann Debate, Wednesday - 18 November 2015
22. Deputy Denis Naughten asked the Minister for Finance the reason for the anomaly between the value added tax registration thresholds for the sale of services and for the sale of goods; if he will review this anomaly; and if he will make a statement on the matter. [40350/15]
View answerI am advised by the Revenue Commissioners that the annual turnover threshold for VAT registration depends on the nature of the business carried on. In general, there are two thresholds: the goods threshold, which is currently €75,000, and the services threshold, which is €37,500. These thresholds were increased to their current values in the Finance Act 2008.
Different VAT registration thresholds for the supply of goods and services are a feature of the EU VAT Directive and Irish VAT legislation and reflect the profound difference between the two supplies; in general, the value added in relation to the supply of goods will be much smaller relative to turnover compared with a supply of services.
