From 2024, it has been proposed that the threshold for mandatory registration for VAT of resident business’ will increase from the current values of €37,500 for services and €75,000 for goods to €40,000 for services and €80,000 for goods. These changes are due to come into effect from the 1st of January 2024.
The changes will only apply to resident businesses in Ireland, and not to businesses based outside of Ireland who are still required to register for VAT when making taxable supplies. These businesses will still have to register for VAT immediately when trading in Ireland. Resident businesses can also still voluntarily register for VAT before reaching the threshold.
It is hoped that by increasing these thresholds that small businesses whose turnover is close to the existing threshold will have more freedom to make decisions regarding their registration and whether to voluntarily register. For registration purposes, the sales figure may be reduced by the amount of VAT paid on stock bought for resale when determining if mandatory registration is required for their business.
For any help needed or enquiries about Irish VAT, please contact us.