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Revenue eBrief

Irish VAT registration thresholds rose to EUR 42,500 and EUR 85,000: what it means for Irish SMEs

Regulatory event dated 1 January 2025. Published 1 June 2026.

From 1 January 2025 the Irish VAT registration threshold rose to EUR 42,500 for services and EUR 85,000 for goods, up from EUR 40,000 and EUR 80,000, under Finance Act 2024.

What changed

  • The services threshold rose from EUR 40,000 to EUR 42,500, a 6.25 percent increase, effective 1 January 2025.
  • The goods threshold rose from EUR 80,000 to EUR 85,000, also effective 1 January 2025, under Finance Act 2024.
  • Registration becomes obligatory once your turnover exceeds the relevant threshold in any 12-month period, not the calendar year alone, so a business approaching the limit should track a rolling twelve months.
  • The EUR 10,000 distance-sales and cross-border digital-services threshold and the EUR 41,000 intra-EU acquisitions threshold were unchanged.
  • A higher threshold means a sole trader or microenterprise can invoice more before VAT registration becomes mandatory, but voluntary registration can still make sense where input VAT recovery exceeds the compliance overhead.

What you need to do

  1. Pull your rolling 12-month turnover and compare it against EUR 42,500 (services) or EUR 85,000 (goods). If you crossed the old threshold in 2024 but sit under the new one, confirm with your accountant whether you can deregister.
  2. Check that your accounting or invoicing software uses the current thresholds in any VAT-registration prompt or alert, and that VAT3 returns continue to file correctly through ROS.
  3. If you sell both goods and services, confirm which threshold applies. The EUR 85,000 goods threshold only covers a business where 90 percent or more of turnover comes from supplies of goods.
  4. Diary the next VAT3 return deadline so a threshold change does not coincide with a missed filing. The Irish Business Calendar lists the upcoming Revenue deadlines.

The Irish VAT registration thresholds increased on 1 January 2025. Businesses supplying services must now register once turnover exceeds EUR 42,500 in any rolling 12-month period, up from EUR 40,000. Businesses supplying goods must register once turnover exceeds EUR 85,000, up from EUR 80,000. Both changes were enacted in Finance Act 2024 and confirmed in Budget 2025.

The increase is modest, a 6.25 percent uplift on each figure, and is intended to keep small businesses below the registration line as nominal turnover rises with inflation. It does not change how VAT is charged, only the point at which registration becomes obligatory.

A common mistake is to read the threshold against the calendar year. Revenue applies it to any continuous 12-month period, so a business that has a strong run over, say, the autumn and winter can cross the line mid-year. If you are trading close to the limit, track a rolling twelve months rather than waiting for a year-end figure.

The two thresholds that did not move are worth noting alongside the headline change. The EUR 10,000 threshold for distance sales of goods and cross-border supplies of telecommunications, broadcasting and electronically supplied services to consumers in other EU member states is unchanged, as is the EUR 41,000 threshold for intra-Community acquisitions. A business selling digital services to EU consumers can therefore hit a registration obligation well below the domestic figure.

This page surfaces the regulation and links the Revenue source. It is not tax advice. Confirm your own registration position with your accountant or tax adviser before acting.

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Affected categories

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Sources

Vendors.ie surfaces the regulation and links the authority's primary document. This is not tax, legal or financial advice. Consult your own adviser before acting.

Last reviewed 1 June 2026