Revenue announces plans for the implementation of VAT in the Digital Age (ViDA) requirements
On 08/10/2025, Revenue set out details of the work it is undertaking to prepare for the implementation of the EU’s VAT in the Digital Age (ViDA) requirements, in line with the Budget speech made by Minister for Finance, Paschal Donohoe TD, yesterday.
The ViDA Directive, which leverages digital technology advances to modernise VAT systems across Europe, was adopted by the EU Council in March 2025 and has been agreed by all Member States. One of the key strands of the ViDA Directive relates to the introduction of eInvoicing between businesses, and real-time digital reporting by businesses to tax authorities. From July 2030, businesses that trade across EU borders will need to operate these new eInvoicing systems to maintain access to current 0% VAT arrangements that support Single Market trading.
To provide Irish businesses with adequate preparation time before ViDA becomes mandatory, Revenue will implement a phased rollout of eInvoicing requirements as follows:
- Phase One – From November 2028, VAT-registered large corporate entities will be required to implement mandatory eInvoicing and real-time reporting for domestic business-to-business (B2B) transactions.
- Phase Two – From November 2029, mandatory eInvoicing and real-time reporting for domestic B2B transactions will be extended to all VAT-registered businesses who engage in cross-border EU B2B trading.
- Phase Three – From July 2030, mandatory eInvoicing and real-time reporting will apply to all cross-border EU B2B transactions.
In addition to the above, all business will need to have the capability to receive eInvoices from November 2028. This includes business that are not required, under the phased roll-out, to issue eInvoices.
These changes will support businesses by facilitating the digitalisation and automation of their internal business and reporting processes. The system advances will also provide EU Member States with additional tools to fight VAT fraud.
Revenue has started work on redesigning and modernising the way in which VAT is administered in Ireland. As part of this work, Revenue launched a public consultation in October 2023 to examine the ways in which Ireland’s VAT invoicing and reporting system could be modernised. The results of this initial consultation, which were released in June 2024, showed that a large proportion of respondents have some degree of digital know-how already, and are supportive of the introduction of eInvoicing and real-time reporting for B2B transactions.
Notwithstanding these initial findings, Revenue recognises that a move to eInvoicing will represent a significant change for some Irish businesses, and feedback submitted during the initial consultation has and will continue to be considered as the technical work and IT systems are developed for successful implementation.
Revenue will provide support for all stakeholders throughout the transition process, and there will be further opportunities for engagement as these reforms take shape, are tested and refined, and put into operation. As part of this, Revenue has, today, released a paper, providing further details on what changes businesses and stakeholders can expect, and what those changes will mean for them. This paper can be accessed here.
[ENDS 08/10/2025]