Written answers
Thursday, 30 November 2017
Department of Finance
VAT Rate Increases
Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source
88. To ask the Minister for Finance the first and full year cost of increasing the farmers' flat rate addition from 5.4% to 6%, to 6.5%; and if he will make a statement on the matter. [51353/17]
Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source
The flat rate addition is designed to compensate non-VAT registered farmers for the VAT incurred by them on the purchases of goods and services. These farmers add this percentage to their prices when selling to VAT registered businesses that subsequently treat the flat rate addition as a normal input VAT in their periodic VAT returns.
Under the EU VAT directive, the flat rate addition is calculated using macro-economic statistics for the preceding three years. Member States are not allowed to fix a rate independently and on that basis therefore it is not appropriate to provide a detailed costing as requested by the Deputy.
No comments