Dáil Éireann Debate, Friday - 7 September 2018
180. Deputy Michael McGrath asked the Minister for Finance the estimated full-year cost of raising the VAT registration threshold for small and medium-sized enterprises from €37,500 to €100,000; and if he will make a statement on the matter. [36823/18]
Amharc ar fhreagraVAT is governed by the EU VAT Directive, with which Irish VAT law must comply. The VAT Directive provides that VAT registration thresholds may only be raised by Member States to maintain their value in real terms, that is, they may only be increased in line with inflation. Our VAT thresholds were increased to their current values, €37,500 for services and €75,000 for goods, on 1 May 2008 and as the Central Statistics Office figures show the consumer price index is below the level it reached in 2008, therefore it is not possible to increase these thresholds.
Ireland’s VAT registration thresholds for small enterprises and the self-employed are among the highest in the EU. In addition, SMEs benefit from a wide range of VAT simplification measures. These include:
- simplified and electronic invoicing,
- special schemes for retailers and pharmacists,
- the facility to make VAT returns on a bi-annual or annual basis,
- the facility for small businesses to submit an annual VIES return rather than monthly
- the cash receipts basis of accounting where the trader is not required to pay VAT until payment for the supply is received, and
- the Mini One Stop Shop (MOSS) which allows businesses to register, file and pay VAT due in all Member States through a single portal.
