The Irish Revenue have announced plans to implement the European Union’s VAT in the Digital Age (ViDA) requirements — marking a major milestone in the digital transformation of VAT compliance across Europe.
The announcement, made in line with the recent Ireland Budget 2026 announcement on 7 October 2025, outlines a phased rollout of eInvoicing and real-time digital reporting obligations for Irish businesses, beginning in November 2028.
A new era for VAT compliance in Ireland
Adopted by the EU Council in March 2025, the ViDA Directive is a cornerstone of the EU’s tax digitalisation strategy. Its goal is to modernise VAT systems by leveraging digital technology, improving compliance and reducing VAT fraud across Member States.
One of ViDA’s most significant reforms is the introduction of mandatory eInvoicing and near real-time reporting for business-to-business (B2B) transactions — a change that will transform how businesses issue, receive and report invoices within the EU.
Ireland’s phased approach to eInvoicing and real-time reporting
Revenue has confirmed that the rollout of ViDA in Ireland will take place in three key phases to allow businesses sufficient time to prepare:
- Phase One – November 2028:
Mandatory eInvoicing and real-time reporting will apply to large VAT-registered corporate entities for domestic B2B transactions. - Phase Two – November 2029:
These obligations will extend to all VAT-registered businesses that engage in cross-border EU B2B trading. - Phase Three – July 2030:
Mandatory eInvoicing and real-time reporting will apply to all cross-border EU B2B transactions — aligning Ireland with EU-wide requirements.
In addition, from November 2028, all Irish businesses — even those not yet required to issue eInvoices — must have the capability to receive eInvoices.
Preparing businesses for ViDA
Revenue emphasised that these reforms will help businesses automate VAT processes, reduce administrative burden, and enhance accuracy and compliance. The digital reporting infrastructure will also equip EU Member States with stronger tools to combat VAT fraud and close the VAT gap.
The rollout follows a period of consultation that began in October 2023, when Revenue sought feedback on the potential design of a modernised VAT invoicing and reporting system. The results, published in June 2024, indicated broad support from stakeholders, with many already demonstrating strong digital capabilities and readiness to adopt eInvoicing.
However, Revenue acknowledged that some sectors may face challenges in transitioning to fully digital reporting, and confirmed its commitment to ongoing engagement, guidance, and technical support throughout the implementation period.
What’s next?
Revenue has also released a detailed information paper outlining the upcoming changes, timelines and implications for Irish businesses and other stakeholders. This paper provides practical insight into what ViDA will mean in practice and how businesses can begin preparing their systems and processes today. Link to the paper here.
Fintua insight
The introduction of ViDA represents a significant shift in how businesses manage VAT compliance — from manual reporting to continuous transaction control (CTC) systems. For Irish businesses, early preparation will be essential to ensure readiness for eInvoicing and real-time reporting.
Key actions to consider include:
- Assessing your organisation’s current invoicing and VAT reporting systems
- Reviewing integration capabilities with eInvoicing and digital reporting platforms
- Engaging with technology partners to ensure alignment with EU and Revenue technical standards
Fintua will continue to monitor developments as Ireland progresses toward ViDA implementation and will provide updates, practical guidance, and expert insights as new details emerge.
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Authors
Lisa Dowling
Specialising in International VAT Compliance solutions, Lisa brings a wealth of knowledge and insight in her dealings with a host of international clients ranging from start-ups through to multinationals. With 21 years VAT experience behind her, Lisa has managed VAT compliance issues and solutions globally for over 11 years. Fintua have 12,000 + corporate clients in over 109 countries and many of these are members of the Fortune 500.
