Budget 2014 - VAT

Retention of the 9% reduced VAT rate

The 9% reduced VAT rate, which was introduced in 2011 as part of the Government Jobs Initiative for tourism related services, is due to revert to 13.5% on 31 December 2013. The 9% VAT rate is being retained.

Increase in VAT Cash Accounting Threshold

The annual VAT cash receipts basis threshold for small to medium businesses is being increased from €1.25 million to €2 million with effect from 1 May 2014.

Increase in the Farmer’s Flat-Rate Addition from 4.8% to 5%

The flat-rate scheme compensates unregistered farmers for VAT incurred on their farming inputs.

The farmer’s flat-rate addition will be increased from 4.8% to 5% with effect from 1 January 2014.

Anti-Evasion Measures

Further measures designed to combat VAT evasion are to be introduced.