Michael Noonan (Limerick City, Fine Gael)
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VAT registration thresholds provide a mechanism for exempting business with a low turnover from having to register for VAT.  This reduces the administrative burden on both small businesses often at the developmental stage and on the Revenue Commissioners.  The VAT registration thresholds for small businesses are currently €37,500 in the case of a person supplying services and €75,000 in the case of person supplying goods.

In setting registration thresholds levels, the objective is to strike an appropriate balance between the desirability of reducing the administrative burden on small businesses and the need to avoid undermining tax compliance or causing competitive distortions relative to registered firms. Reducing the VAT registration threshold for architects may increase the administrative burden on smaller firms, while raising the threshold may cause competitive distortions.

VAT is governed by the EU VAT Directive with which Irish VAT law must comply. The EU VAT Directive provides that VAT registration thresholds may only be raised by Member States to maintain their value in real terms, that is, they may only be increased in line with inflation.