VAT Modernisation

The Finance Bill (No. 2) 2026 which contains the legislative foundation for VAT Modernisation in Ireland was published on 19 October. The Bill provides for structured domestic eInvoicing and digital reporting, in preparation for the EU's VAT in the Digital Age (ViDA) requirements. The Bill proposes amendments to the Value-Added Tax Consolidation Act 2010. The provisions remain subject to the legislative process.

Minister of State with responsibility for Financial Services, Credit Unions and Insurance, Robert Troy TD, moved the Finance Bill to Second Stage debate yesterday. Today, Revenue has released a paper, ‘VAT Modernisation: Implementation of eInvoicing in Ireland – 2026 Update’, which sets out what the legislation will mean for businesses and stakeholders, and explains the implications of these changes for them.

The phased rollout announced by Revenue in October 2025 is unchanged. From 1 November 2028 (Phase One), VAT-registered large corporates, approximately 2,400 businesses, will be required to issue eInvoices and report a subset of that data to Revenue in real time for domestic business-to-business transactions. From the same date, all businesses in Ireland must be able to receive eInvoices. Phase Two will begin on 1 November 2029, extending the domestic obligations to VAT-registered businesses engaged in cross-border EU trade. Phase Three begins on 1 July 2030, when the ViDA requirements become mandatory for cross-border EU transactions.

Revenue has also launched the eInvoicing Hub on the Revenue website, a single place for information on VAT Modernisation. The eInvoicing Hub brings together guidance and an interactive guide to help businesses identify how they are affected. Under 'Reference Materials', Revenue has published draft regulations that will support the legislation. They deal with practical details such as the use of the Peppol network, the transmission of data to Revenue and data requirements. Peppol, the secure international network already used for eInvoicing by some Irish public bodies and by businesses across Europe, will be the default network for sending eInvoices and the mandated method for reporting data to Revenue.  The regulations are currently in draft form and may be amended before they are finalised.

Large corporates can begin preparing now by reviewing and optimising their current invoicing processes, engaging with their solution providers, and planning how eInvoicing will be integrated into their systems. While it would be prudent to wait for the technical specifications before locking down final system builds, early planning and design work can proceed. Businesses that will only be required to receive eInvoices from 1 November 2028 do not need to take any action at this time; further guidance will be published on the eInvoicing Hub.  

In addition, Revenue intends to become Ireland's designated Peppol Authority from 1 January 2027, taking over from the Office of Government Procurement.

Revenue has been engaging with stakeholders extensively and will expand with a programme of communication events for businesses, tax practitioners, representative bodies and software providers. These events will commence from mid-November; details will be advised on the eInvoicing Hub shortly.

Revenue recognises that eInvoicing is a significant change for many businesses and is committed to supporting them throughout the transition. Enquiries about ViDA and VAT Modernisation can be sent to: vatmodernisation@revenue.ie. 

[ENDS 21/10/2026]