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VAT relief threshold increased: remember to apply in time

The threshold for the VAT relief scheme and the lower limit for payment of VAT rose at the start of the year to €15,000.

The Tax Administration reminds entrepreneurs that if you have been VAT registered and the turnover for your financial year (of 12 months) is less than €30,000, you can apply for relief on the VAT you have paid.

The limits for the VAT relief scheme rose at the start of 2021. If a business’s turnover was under €15,000 (up from €10,000 in 2020), the business can claim back all the VAT it paid. If its turnover was over €15,000, but under €30,000, the business can reclaim some of the VAT it paid.

When should businesses apply for VAT relief?

When you apply for VAT relief depends on your tax period for VAT:

if you pay VAT monthly: on the VAT return for the final month of the accounting periodif you pay VAT quarterly: on the VAT return for the final quarter (October–December) of the calendar yearif you pay VAT yearly: on the VAT return for the calendar year

Apply for the relief in MyTax. Use the calculator on the Tax Administration website to calculate your VAT relief and get all the information you need for your application. If your financial year is not 12 months long, the calculator will adjust your turnover proportionately to make it equivalent to 12-month turnover.

You can apply for VAT relief retroactively for up to three years after the financial year in question has ended.

The lower limit for paying VAT rose at the start of 2021 and is now €15,000. The higher limit applies to financial years beginning in 2021.

Read more about the VAT relief scheme here.