Dáil Éireann Debate, Thursday - 16 April 2026
205. Deputy Ged Nash asked the Tánaiste and Minister for Finance if he will consider reviewing the VAT registration threshold for self-employed musicians whose core business is live performances at weddings and other such events and occasions either individually or as part of ensembles; if he will consider introducing a lower rate of VAT for such undertakings; and if he will make a statement on the matter. [27774/26]
View answerAs the Deputy will be aware, Irish VAT legislation which includes the obligation to register and the setting of registration thresholds is determined by the EU VAT Directive and must be complied with.
Under the Directive there is an upper limit of €85,000 on registration thresholds that Member States may apply.
Ireland’s VAT registration thresholds are set at €85,000 for supplies of goods and €42,500 for supplies of services. Even if the turnover is less than a threshold limit, a business may elect to register for VAT.
Ireland’s current registration thresholds are some of the most generous thresholds in the EU with some Member States not operating any threshold meaning all businesses are required to register for VAT.
The thresholds are kept at an appropriate level to support small businesses by reducing administrative burden but also to not cause competitive distortions or undermine tax compliance.
The VAT Directive provides that Member States may fix varying thresholds for different business sectors based on objective criteria. A separate threshold cannot be set for self-employed people or for SMEs or for family run businesses. Thresholds must be sectoral based and not based on the type of business structure.
As the Deputy will be aware, any changes to VAT registration thresholds must be done as part of the normal Budget process.
