Ivan Yates
Ceist:198 Mr. Yates asked the Minister for Finance the cost of raising the present VAT threshold of services for small businesses of £15,000 to £40,000.
Written Answers. - VAT Registration Threshold.
Ivan Yates
Ceist:199 Mr. Yates asked the Minister for Finance the cost of raising the VAT threshold for the sale of goods for small businesses from £32,000 to £40,000.
I propose to take Questions Nos. 198 and 199 together.
It is difficult to predict exactly how small businesses would react to changes in the registration thresholds such as those outlined by the Deputy: the decision on whether to register, or deregister, is one for the individual business concerned. However, it is estimated that the cost to the Exchequer of increasing the VAT registration threshold for the sale of goods from £32,000 to £40,000 would be at most £3.5 million in a full year and that the cost of raising the services threshold from £15,000 to £40,000 would be of the order of £6 million in a full year.