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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