Budget 2024

With effect from 1 January 2024, the turnover thresholds beyond which suppliers are obliged to register for VAT will rise:

For a supplier of goods, the new threshold will be €80,000, up from €75,000.

For a supplier of services (or mixed supplies), the new threshold will be €40,000, up from €37,500.  

Budget 2021

The ‘July Stimulus’ package reduced the standard rate of VAT from 23% to 21% from 01 September 2020 to 28 February 2021. In the Hospitality & Tourism sector the 13.5% rate will be reduced to 9% from 01 November 2020 to 31 December 2021.

Previous

The standard rate of VAT has remained at 23% . The reduced rate of VAT remains at 13.5% and 9% for certain items.

The UK rate of VAT is currently 20%.

The 9% rate applicable to certain service industries (tourism / hospitality etc) will cease and the rate will revert back to 13.5% as of 01 January 2019. Certain items will remain at 9%, these items include newspapers and sporting facilities etc. The VAT rate on electronic newspapers will reduce from 23% to 9%.

Therefore services such as hotels, cafés and hairdressing will now be liable at the 13.5% rate.

The VAT rate for the use of sunbeds has increased from 13.5% to 23% as a policy introduced to acknowledge the Cancer risks sunbeds present.

VAT reclaim scheme to be introduced for Charities in 2019 for VAT incurred in 2018 on a pro-rata basis on non-State income to total income.

Threshold for cash receipts basis for VAT reporting increases from €1.25m to €2m from 01 May 2014.

The farmer’s flat rate addition will be increased from 5.2% to 5.4% with effect from 01 January 2017.

Home Renovation Incentive (HRI)

This incentive will provide a tax credit to residential properties who carry out renovation and improvement works on their principal private residences up to 31 December 2018. The tax credit is calculated at 13.5% of qualifying expenditure over €5k to a maximum of €30k. Therefore a credit will be available of between €675 to €4,050.