Ireland has outlined its plans to implement the EU’s VAT in the Digital Age (ViDA) requirements, following confirmation from Minister for Finance Paschal Donohoe during the Budget speech on 7 October 2025.
The ViDA Directive was adopted by the Council of the European Union in March 2025 and agreed by all Member States. It aims to modernise VAT systems across Europe through greater use of digital technology, including mandatory e-invoicing and real-time digital reporting for cross-border business transactions.
From July 2030, businesses trading across EU borders will need to operate these new e-invoicing systems to maintain access to the 0% VAT arrangements that support Single Market trading. To help businesses prepare, Revenue will introduce the new rules in phases:
- Phase One – November 2028: Mandatory e-invoicing and real-time reporting for VAT-registered large corporate entities for domestic B2B transactions.
- Phase Two – November 2029: Expansion of mandatory e-invoicing and real-time reporting to all VAT-registered businesses engaged in cross-border EU B2B trade.
- Phase Three – July 2030: Mandatory e-invoicing and real-time reporting for all cross-border EU B2B transactions.
All businesses, including those not required to issue e-invoices under the phased rollout, must be able to receive e-invoices from November 2028.
Revenue has already begun work on redesigning Ireland’s VAT administration system. A public consultation launched in 2023 and concluded in 2024 showed broad support for the introduction of e-invoicing and real-time reporting, though many respondents highlighted the scale of the transition.
Revenue acknowledged that the shift will be significant for some businesses and said that feedback gathered so far will continue to shape the design and rollout of the new system. The organisation has committed to providing support throughout the transition, including further engagement and testing as the reforms are developed.
A paper outlining the planned changes and their impact on businesses and stakeholders has been published today and is available on Revenue’s website.