Revenue E-Brief

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Revenue E-Brief Issue 13, 28th February 2007

Value Added Tax

With effect from 1st March 2007, a number of changes have been made to the registration thresholds for small businesses and to the determination of tax due by reference to cash receipts. These are outlined below.

Registration Thresholds

The annual registration thresholds for businesses have been increased to the following amounts:

  • €70,000 for businesses which supply goods (where not less than 90% of the annual turnover is from the supply of goods).
  • €35,000 for other businesses, including those supplying services.

Businesses whose annual turnover is below these thresholds are not required to register for VAT (but may elect to do so).

Determination of Tax Due by Reference to Cash Receipts

The turnover threshold for certain traders accounting for VAT on a cash receipts basis has been increased to €1million.

The new position is that traders may elect to account for VAT on the cash receipts basis, as follows:

  • Traders whose turnover consists almost exclusively (not less than 90%) of supplies to unregistered persons.
  • Other traders whose annual turnover does not exceed €1 million.

Further Information

Enquiries or further information may be obtained from your local Revenue District.