Bernard Allen
Ceist:191 Mr. Allen asked the Minister for Finance if he will increase the VAT exemption for hairdressing salons. [6682/02]
Vol. 549 No. 3
191 Mr. Allen asked the Minister for Finance if he will increase the VAT exemption for hairdressing salons. [6682/02]
Hairdressing is not exempt from VAT. Like any other taxable business it can benefit from the registration thresholds. This means that the business does not have to charge VAT provided it remains at or under the relevant threshold, but it also means that it cannot recover any VAT charged on the inputs that it uses in the course of its business activities.
The registration thresholds for VAT were last increased in 1994 and are currently €25,500 for services and €51,000 for goods. Ireland has the second highest registration threshold for goods and services in the EU, and some member states have no registration threshold for goods and services and require all taxable persons to register irrespective of their turnover.