Budget 2013 - VAT

Increase in threshold for the cash receipts basis

The annual turnover threshold for eligibility for the cash receipt basis of accounting for VAT will be increased from €1 million to €1.25 million with effect from 1 May 2013.

Reduction in the Farmer’s Flat-Rate Addition from 5.2% to 4.8%

The farmer’s flat-rate addition will be reduced from 5.2% to 4.8% with effect from 1 January 2013. The flat-rate addition is reviewed annually in accordance with the EU VAT Directive. The new 4.8% rate continues to achieve full compensation for farmers. The flat-rate scheme compensates unregistered farmers for VAT incurred on their farming inputs.