ViDA and VAT modernisation

What is VAT Modernisation?

VAT Modernisation is a phased move to electronic invoicing (e-invoicing) and digital reporting of Value-Added Tax (VAT) transaction data. It aligns Ireland’s VAT reporting with the EU’s VAT in the Digital Age (ViDA) framework, modern international practice, and reflects how many businesses already use digital systems to manage sales, purchases and payments. VAT Modernisation aims to help businesses report the correct VAT at the correct time, while reducing errors, manual work and fraud.

Key features of VAT Modernisation

e-invoicing

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 with VAT registered large corporates and eventually encompassing all VAT-registered businesses. This approach will ensure that businesses have time to prepare and transition in an orderly way to e-invoicing and will be supported by early engagement with businesses, representative bodies and software providers.

For all phases, businesses must ensure they can receive e-invoices from any supplier.

Additional information

Revenue has published a paper on the e-invoicing implementation in Ireland, which can be viewed in Further guidance.

Next: Next steps for VAT in the Digital Age (ViDA)