VAT Modernisation

Overview

VAT Modernisation is a phased move to eInvoicing and digital reporting, aligning Ireland with the European Union's (EU’s) ViDA framework. It reflects modern international practice as many businesses already use digital systems to manage sales, purchases and payments.

Key features of VAT Modernisation

eInvoicing

The electronic exchange of structured invoice documents between suppliers and buyers will become standard practice. This supports integration with modern business systems, faster processing and reduces errors.

Real-time reporting

Businesses will report VAT transaction details as they occur, embedding compliance into daily operations and reducing manual effort.

Phased implementation

The new requirements will be introduced gradually, starting in November 2028. VAT registered large corporates will issue eInvoices for taxable transactions with Irish customers and digitally report a subset of  that data to Revenue.

The phased implementation will continue, with announced phases in November 2029 and July 2030, expanding the obligation to additional cohorts of Irish VAT-registered businesses. This ensures that businesses can prepare for an orderly transition to eInvoicing and allows Revenue to engage early with businesses, representative bodies and service providers.

For all phases, all businesses in Ireland must ensure they can receive eInvoices from suppliers.

Additional information

From 13 October 2023 to 31 January 2024, Revenue ran a public consultation on how to modernise Ireland’s Value-Added Tax (VAT) invoicing and reporting system. This initial consultation covered the reform of business to business (B2B) and business to government (B2G) VAT reporting, supported by eInvoicing. Revenue published a report on this consultation process on 27 June 2024.

Ireland’s plans for VAT Modernisation were announced by the Minister for Finance in Budget 2026. Following this, Revenue published Ireland’s eInvoicing roadmap in a paper called VAT Modernisation – Implementation of eInvoicing in Ireland.

Next: VAT Modernisation timeline