Dáil Éireann Debate, Tuesday - 24 October 2023
195. Deputy Michael Ring asked the Minister for Finance if he has plans to match the VAT threshold for a sector (details supplied) as has been done in other EU countries that have updated their regulations in support of the circular economy; and if he will make a statement on the matter. [46308/23]
Amharc ar fhreagraI am advised by Revenue that the VAT registration thresholds are subject to the requirements of EU VAT law, with which Irish VAT law must comply. Ireland’s threshold for a business supplying services is €37,500 and our threshold for a business supplying goods is €75,000. Businesses whose annual turnover is below these levels are not obliged to register for VAT, although they may opt to do so. The Deputy is specifically asking about barter trade, and I can inform him that these thresholds encompass barter transactions.
Currently, EU VAT law provides that registration thresholds may only be raised by Member States to maintain their value in real terms, that is, they may not be increased above inflation. Ireland’s VAT thresholds were increased to their current values on 1 May 2008. As part of Budget 2024, I announced that the VAT registration thresholds for goods would rise to €40,000 and €80,000 for services and goods respectively. The new thresholds will apply from 1 January 2024.
The Deputy may wish to know that the VAT SME Package will enter into force on 1 January 2025. The amendments to the VAT Directive under this package will introduce an upper registration threshold limit of €85,000 for Member States.
