Leo Varadkar (Dublin West, Fine Gael)
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Question 147: To ask the Minister for Finance his plans to replace the 1% betting levy with a levy on pay-out; the amount it would raise; and if he will make a statement on the matter. [42844/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have stated previously that it is my intention to widen, if possible, the tax base on which betting duty would be applied.

We have a situation where bets placed through one platform, namely betting shops, are subject to 1% betting duty but bets placed through other platforms are generally not. This is because bets placed either online or over the phone are generally with out-of-State companies so applying betting duty has been difficult.

This is an uneven situation and as the Minister responsible it makes sense to explore options to even-out the position. Consequently I have asked my officials, in conjunction with the Office of the Attorney General, the Office of the Revenue Commissioners and the Department of Justice and Law Reform, to look at the scope to overcome legal and operational difficulties in this area. I have stated previously in this House that any extension of betting duty will be applied on a fair basis and should not be perceived as an attempt to threaten jobs. Also, tax changes will be in tandem with ongoing work by the Department of Justice and Law Reform on issues surrounding licensing and regulation.

Some of the leading figures in the betting sector in Ireland have publicly stated they have no problem with extension of the betting duty once it is done in a manner that is enforceable for all and consequently does not disadvantage Irish based services.

I am endeavouring to ensure that we can put together a solution that is fair and reasonable, has a sense of balance and will not threaten jobs. In that context various proposals are being considered.

Leo Varadkar (Dublin West, Fine Gael)
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Question 148: To ask the Minister for Finance the thresholds for payment of VAT for construction companies and contractors and if the threshold is different for different types of business or undertaking; and if he will make a statement on the matter. [42845/10]

Leo Varadkar (Dublin West, Fine Gael)
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Question 149: To ask the Minister for Finance if he has given consideration to raising the threshold for VAT for construction and other contractors to discourage them from going into the grey economy; and if he will make a statement on the matter. [42846/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 148 and 149 together.

The annual turnover threshold for VAT registration depends on the nature of the business carried on. In general, there are two thresholds: the goods threshold, which is currently €75,000, and the services threshold, which is €37,500. Where 90 per cent or more of the turnover of a person or company consists of the supply of taxable goods, that person or company must register and account for VAT on sales if the total annual turnover of the business exceeds the goods threshold. In most other cases registration is required if the annual turnover from the supply of taxable goods or taxable services exceeds the services threshold. However, a person who makes a supply of immovable goods (that is, land or buildings) has no threshold, and must register and account for VAT on all sales regardless of value.

Accordingly, a building contractor whose turnover is from the supply of construction services must register if the annual turnover of the business exceeds €37,500, whereas a property developer must register for VAT for all sales regardless of value.

With regard to raising the VAT registration thresholds for building contractors, or introducing a threshold for property developers, I would point out that the thresholds can only be increased in line with inflation, and the Irish services and goods thresholds are as high as they can be. Furthermore at €37,500, Ireland has the fourth highest threshold for services in the EU and some countries have no registration thresholds.