Michael Ring
Ceist:153 Mr. Ring asked the Minister for Finance if he will increase the VAT registration exemption limit in view of the effect the introduction of the minimum wage will have on small businesses. [2799/00]
Written Answers. - VAT Law.
The position is governed by EU VAT law with which Irish VAT law must comply. This requires that any increase in the individual threshold for goods and services must maintain the real value of that threshold. This issue was reviewed in the context of the 2000 budget and it was calculated that the real value of the services threshold would now be in the region of £22,000 and the goods threshold would now be in the region of £44,000.
Ireland has the second highest registration threshold for goods and services in the EU and some member states have no registration threshold for goods or services and require all firms to register irrespective of their turnover.
I am of the view that where there is a high registration threshold, this can cause difficulties for registered businesses where they have to compete with a larger number of unregistered businesses who do not reach the registration threshold. I have no plans therefore to make any changes to the existing registration thresholds.