Publication of Irish Finance Bill

Irish Finance (No. 2) Bill 2023 was published on 19 October 2023 and contained a number of amendments with respect to VAT.

Finance (No. 2) Bill 2023 was published on 19 October 2023 and contained a number of amendments with respect to VAT including the following:

• increase in the VAT registration thresholds from EUR37,500 to EUR40,000 for services and from EUR75,000 to EUR80,000 for goods;
• introduction of VAT rules for the Deposit Return Scheme which is being introduced in February 2024 in order to encourage people to recycle drink containers;
• removal of “issuing” with respect to the VAT exemption relating to stocks, shares, debentures and other securities;
• confirmation that a letting of emergency accommodation is exempt from VAT under Irish VAT law; and
• provision for the zero rate of VAT to apply for the supply and installation of solar panels installed in qualifying primary and post primary schools.

In addition to the above measures, the Minister for Finance announced in his budget speech that the Irish Revenue Commissioners would launch a public consultation focusing on how digital advances can be used to modernise Ireland’s VAT invoicing and reporting systems. The initial consultation covers the reform of business to business (B2B) and business to Government (B2G) VAT reporting, supported by eInvoicing.

The initial public consultation can be accessed here and runs until 12 January 2024.

Key takeaway

Finance (No. 2) Bill 2023 did not contain a significant number of VAT amendments and the public consultation announced on budget day allows stakeholders an opportunity to input into the VAT modernisation agenda.