Oireachtas Joint and Select Committees
Wednesday, 27 November 2013
Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance
Finance (No. 2) Bill 2013: Committee Stage (Resumed)
2:50 pm
Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source
I move amendment No. 82:
The increase in the threshold for accounting for VAT on a cash receipts basis is one of the most significant measures introduced in the budget to assist SMEs. Anyone in business will know that for SMEs the VAT return is a significant cash flow issue, particularly if it is on the basis of invoices issued, in respect of which there could be significant delays in terms of payment, particularly in a period of economic downturn.
In page 79, line 28, to delete " "€2,000,000" " and substitute " "€2,500,000" ".
The threshold is being increased to €2 million, which I note from the budget documentation will cost €15 million in 2013 and nothing in a full year. Clearly, there are timing issues involved. Perhaps the Minister would explain how the figure of €2 million was arrived at and why it is not proposed to go further if it is neutral from an Exchequer point of view to do so but involves significant benefits for the SMEs involved.
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