Dáil Éireann Debate, Tuesday - 17 November 2009
172 Deputy Richard Bruton asked the Minister for Finance his views on increasing the threshold of €500,00 above which companies are required to pay VAT in advance of the settlement of the account of their customers; and if he will make a statement on the matter. [41759/09]
Amharc ar fhreagraI assume the Deputy is referring to the cash basis accounting system for VAT, whereby traders account for VAT on receipt of payment for a supply as opposed to when an invoice was issued, as under the normal system. The turnover threshold, below which traders can qualify for the cash-basis system, is currently €1 million. This threshold has been effective since 1 March 2007, before which it was €635,000. With regard to increasing further the cash-basis threshold, the Deputy will appreciate that it is the usual practice for the Minister for Finance not to speculate or comment in advance of the Budget on what it will contain and I do not propose to deviate from that practice.
