Ireland Revenue Announces Roadmap for VAT in the Digital Age (ViDA)

On 8 October 2025, the Irish Revenue Commissioners announced the next phase in modernising Ireland’s VAT system through the implementation of the EU’s VAT in the Digital Age (ViDA) Directive. This follows the Budget 2026 speech by Minister for Finance Paschal Donohoe TD, and aligns Ireland with EU-wide plans to introduce mandatory eInvoicing and real-time digital reporting across Member States.

Background to ViDA

Adopted by the EU Council in March 2025, the ViDA Directive leverages digital technology to simplify VAT compliance and strengthen the fight against VAT fraud. From 1 July 2030, businesses engaged in cross-border B2B trade within the EU will be required to issue structured electronic invoices (e-invoices) and report key transaction data to tax authorities in real time. Only businesses using these systems will retain access to the 0% VAT for intra-Community supplies that currently support EU Single Market trade.

Ireland’s Phased Rollout Plan for E-invoicing and E-reporting

To provide sufficient preparation time, Revenue has outlined a three-phase implementation plan for e-invoicing and real-time reporting in Ireland:

• Phase 1 – November 2028: Mandatory e-invoicing and real-time reporting for large VAT-registered corporate entities for domestic B2B transactions.
• Phase 2 – November 2029: Expansion of the obligation to all VAT-registered businesses engaged in cross-border EU B2B trade, allowing them to familiarise themselves with the system before the EU-wide rollout.
• Phase 3 – July 2030: Full implementation of ViDA eInvoicing and real-time reporting for all cross-border EU B2B transactions.

From November 2028, B2B e-invoicing and e-reporting will be mandatory for domestic B2B transactions in Ireland issued by certain suppliers.

From November 2028, all businesses—including those not yet required to issue e-invoices—must have the capability to receive e-invoices in a structured electronic format.

According to Revenue, this initiative represents the most significant modernisation of Ireland’s VAT system in over 50 years, bringing it in line with international best practice.

Revenue emphasised its commitment to ongoing consultation with businesses, software providers, and tax practitioners throughout the transition. Findings from its 2023 public consultation—published in June 2024—showed strong business support for the digitalisation of VAT reporting, though many respondents requested clear technical guidance and ample preparation time.

Detailed technical specifications and further engagement opportunities will be released well in advance of each rollout phase. Revenue confirmed that the system will use European Standard EN16931 for structured data, with integration based on the PEPPOL framework already used for public sector e-invoicing in Ireland.

Take a look at the official announcement by the Irish revenue.