Increase to VAT Registration Thresholds
The Bill provides that from 1 January 2025, the existing VAT Registration Thresholds will increase from €40,000 for services to €42,500 and from €80,000 for goods to €85,000.
Farmer’s Flat Rate compensation
The Bill provides for an increase in the flat-rate scheme for unregistered farmers. This measure compensates such farmers on an overall basis for VAT incurred on their farming inputs. This rate will increase from the current rate of 4.8% to 5.1% from 1 January 2025.
Tobacco Excise
The Bill provides for the increase in excise duty on tobacco products which came into effect from midnight on Budget night through a Financial Resolution. The increase amounts to 1 euro, inclusive of VAT, on a pack of 20 cigarettes in the most popular price category together with pro rata increases for other tobacco products.
VAT rate on the supply and installation of heat pumps
The Bill provides for a reduced VAT rate of 9% on heat pumps meeting specific technical standards from 1 January 2025. This measure is designed to incentivise homeowners to install heat pumps.
Extension of the VAT reduction for Gas and Electricity
The Bill confirms the extension of the 9% reduced VAT rate for gas and electricity which was introduced with effect from midnight on Budget night by Financial Resolution for an additional 6 months, until 30 April 2025.
Source Orbitax
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