Budget 2024 and VAT or Excise Duties

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Budget 2024 proposes some changes to VAT and Excise Duty as follows:

Increase in VAT Registration Thresholds

The existing VAT registration thresholds are being increased. From 1st January 2024 the VAT registration thresholds will be €40,000 for services and €80,000 for goods.

VAT scheme for unregistered farmers

The flat-rate scheme compensates unregistered farmers on an overall basis for VAT incurred on their farming inputs.  Based on macro-economic data received from the CSO and the Revenue Commissioners for the period 2021-2023, this rate will decrease from the current 5.0% to 4.8% from 1 January 2024.

VAT rate for gas and electricity

The 9% VAT reduction for gas and electricity is being extended for an additional 12 months, until 31 October 2024.

Charities Compensation Scheme

From 1 January 2024, the total annual capped fund for the Charities VAT Compensation Scheme is being increased up from €5 million, to €10 million.

VAT rate for audio books and ebooks

From 1 January 2024, the VAT rate for audiobooks and e-books is being reduced from 9% to zero.

VAT rate on the supply and installation of solar panels in schools

From 1 January 2024, the VAT rate for the supply and installation of solar panels installed in schools is being reduced to zero.   Currently the 0% rate only applies to the supply and installation of solar panels on private dwellings.

Temporary Excise Rate Reduction

The temporary excise rate reductions applying to auto diesel, petrol and marked gas oil which were due to expire on 31 October 2023 are being extended until 31 March 2024.  Half of the outstanding amounts of 8 cents on petrol, 6 cents on diesel and 3.4 cents on Marked Gas Oil will be restored on 1 April 2024, with the balance restored on 1 August 2024.

Tobacco Products Tax                                                 

The excise duty on a packet of 20 cigarettes is being increased by 75 cents (including VAT) with a pro-rata increase on the other tobacco products.


In light of public health interests, continuing delays to the revision of the Tobacco Products Tax Directive and the Programme for Government commitment to tax e-cigarettes and vaping products.  A domestic tax will be introduced on these products in next year’s Budget.

 Return to Budget 2024 Summary

Please contact Robert Lohan for further details rlohan@dhkn.ie

This newsletter is intended as a general guide to the subject matter and should not be used as a basis for decisions.  Whilst every effort has been made to ensure the accuracy of the content, no liability can be taken for any omissions or errors.  Professional taxation advice should always be taken prior to proceeding with any transaction giving rise to tax consequences.

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