Denis Naughten (Roscommon-South Leitrim, Independent)
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85. To ask the Minister for Finance if he will review the registration thresholds for value added tax in view of an anomaly where a business selling physical goods can earn €75,000 before having to register for VAT but a service business can only earn €37,500 before having to register; and if he will make a statement on the matter. [22907/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that registration thresholds are provided for in the VAT Directive (Council Directive 2006/112/EC), with which Irish VAT legislation must comply. The Directive provides that the VAT exemption limits may only be raised to maintain their value in real terms, that is, they may only be increased in line with increases in the consumer price index.  The thresholds were increased to their current values on 1 May 2008.  The threshold for businesses supplying services is the seventh highest in the EU while our goods threshold is the third highest.  A comparative table of VAT registration thresholds in the Member States as applicable on 15 April 2015 can be found on the Europa website at

Different VAT registration thresholds for the supply of goods and services are a feature of the EU VAT Directive and Irish VAT legislation and reflect the profound difference between the two supplies; in general, the value added in relation to the supply of goods will be much smaller relative to turnover compared with a supply of services.