Increase VAT Threshold for Sole Traders
Increase VAT threshold on services to €75,000.
Why is this important?
Every minute, the Irish government is making a huge amount of money by charging people different taxes, including VAT. Currently, the VAT threshold for big companies and small businesses is €75,000 on selling products and €37,500 on providing services.
When a sole trader who provides services reaches €37,500 annual turnover, they are obliged to register for VAT and start charging their clients that tax. This means the business owner has no choice but to:
1. Increase their prices by 23% and more than likely lose a number of existing and future clients.
2. Or include VAT in their current prices and substantially reduce their hard-earned income.
3. Or increase their prices slightly (by 10-12%) and still encounter the above.
In the current situation, where the VAT threshold is €37,500, it is so very unfair for the hard-working small businesses in Ireland to give away their hard-earned money to the government. But it's equally unfair for their customers to pay that VAT if they can't claim it back!
The VAT threshold on services must be increased to the same or at least a close value of €75,000 so that goods suppliers and service providers have an equal chance of thriving.
It’s so much easier to include the whole (or almost whole) amount of VAT in the service fees when your annual turnover is €75,000 or more. Isn’t that right?
The Irish government should give all companies in Ireland, including sole traders, an equal chance to get well established. In the United Kingdom, the VAT threshold is £85,000 for both goods suppliers and service providers. If this works in the UK, it will work in Ireland.
So, if you agree with me, my friend, simply sign this petition and feel free to share it on social media and via email with your friends. Together, we can make it happen!