In the 2025 Budget, released on 1 October 2024, Ireland is proposing to increase the existing VAT registration thresholds for businesses as follows:
Goods: from €80,000 to €85,000; and
Services: from €40,000 to €42,500
In addition, Ireland is to implement the EU SME Scheme VAT registration thresholds which enable any EU resident business to sell goods or services in other EU member states under their resident VAT number below €100,000 per annum.
These changes will come into effect from 1 January 2025.
These increase changes will provide more latitude to small businesses whose turnover is close to the existing thresholds, and is broadly in line with forthcoming EU VAT registration thresholds. For registration purposes, the sales figure may be reduced by the amount of VAT paid on stock bought for re-sale. Businesses should use this reduced turnover figure to see if they can register for VAT.
This adjusted turnover figure is used only for the purposes of determining your turnover for registration for VAT.
Businesses may still voluntarily register for Irish VAT.
VAT registration thresholds only apply to resident businesses. Non-resident businesses making taxable supplies which require them to VAT register (e.g. selling goods domestically), will have to VAT register immediately.
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