Peter Cleere (Carlow-Kilkenny, Fianna Fail)
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273. To ask the Minister for Finance if there are plans to widen the VAT for small family home bed and breakfast suppliers as is the norm in other countries that have a threshold of €150,000 unlike €37,500 in Ireland at present; and if he will make a statement on the matter. [32093/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the VAT registration thresholds are subject to the requirements of EU VAT law, with which Irish VAT law must comply. Under the EU VAT Directive there is an upper limit of €85,000 on registration thresholds that Member States may apply. The EU VAT Directive does not allow Member States to set a national annual threshold higher than that. Ireland’s VAT registration thresholds are set at €85,000 for supplies of goods and €42,500 for supplies of services. These VAT goods and services thresholds were increased from €80,000 and €40,000 in Finance Act 2024.

A supplier that solely supplies bed and breakfast services and has an annual turnover below the VAT registration threshold of €42,500 is exempt for registering and accounting for VAT. Once this VAT registration has been exceeded the supplier is obliged to register and account for VAT on its bed and breakfast service.

We are aware that a small number of Member States have historic derogations allowing them apply higher VAT thresholds. However, many other Member States have lower VAT registration thresholds than Ireland. I am satisfied that the threshold we apply is appropriate and have no plans to amend it at this time.