Shane Cassells (Meath West, Fianna Fail)
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188. To ask the Minister for Finance if he will review the VAT threshold of €37,500 for sole traders providing services (details supplied); and if he will make a statement on the matter. [40159/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that VAT is governed by the EU VAT Directive (Council Directive 2006/112/EC), with which Irish VAT law must comply. The thresholds for Ireland and the UK date from accession into the EU and the Directive only provides for the raising of those thresholds by Member States to maintain their value in real terms, that is, they may only be increased in line with inflation. The Irish VAT thresholds were increased to their current values on 1 May 2008. As Central Statistics Office figures show the consumer price index is below the level it reached in 2008, it is not possible to increase the thresholds.

Furthermore, Ireland's VAT registration threshold for traders supplying services is the seventh highest in the EU.