Dáil Éireann Debate, Tuesday - 7 November 2023
322. Deputy Claire Kerrane asked the Minister for Finance if consideration has been given to adjusting the flat-rate VAT scheme for farmers (details supplied); if he has engaged with the Minister for Agriculture, Food and the Marine on the scheme; and if he will make a statement on the matter. [47999/23]
View answerI am advised by Revenue that the VAT registration thresholds are subject to the requirements of EU VAT law, with which Irish VAT law must comply. Ireland’s threshold for a business supplying services is €37,500 and our threshold for a business supplying goods is €75,000. Businesses whose annual turnover is below these levels are not obliged to register for VAT, although they may opt to do so.
Currently, EU VAT law provides that registration thresholds may only be raised by Member States to maintain their value in real terms, that is, they may not be increased above inflation. Ireland’s VAT thresholds were increased to their current values on 1 May 2008. As part of Budget 2024, I announced that the VAT registration thresholds for goods would rise to €40,000 and €80,000 for services and goods respectively. The new thresholds will apply from 1 January 2024.
It is not possible to raise the VAT threshold to €250,000.
