Written answers
Tuesday, 30 September 2014
Department of Finance
VAT Rate Increases
Michael McGrath (Cork South Central, Fianna Fail)
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200. To ask the Minister for Finance the partial and full-year cost to the Exchequer of raising the VAT registration threshold for small and medium enterprises with low turnover from €70,000 to €100,000, €150,000, €200,000 and €250,000, respectively; and if he will make a statement on the matter. [36946/14]
Michael Noonan (Limerick City, Fine Gael)
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It is assumed that the Deputy is referring to the VAT registration threshold for goods, which is currently €75,000. On this basis, I am informed by the Revenue Commissioners that it is tentatively estimated that the full year cost to the Exchequer of raising the threshold is as set out in the table.
Change in Threshold | Estimate Cost Range |
---|---|
75,000 to 100,000 | €80m€110m |
75,000 to 150,000 | €310m€430m |
75,000 to 200,000 | €635m€880m |
75,000 to 250,000 | €1,050m €1,450m |
I would point out however, that any increase in the thresholds above the level of inflation would require a derogation from EU VAT law and agreement by all 28 Member States before it could be introduced.
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