Revenue has confirmed that mandatory e-invoicing and real-time reporting will be introduced as part of its VAT Modernisation Programme, one of the most significant changes to how businesses manage VAT in decades.
This update will align Ireland with the EU’s VAT in the Digital Age (ViDA) initiative, to improve efficiency, transparency, and compliance across all member states. The Revenue VAT Modernisation document linked here
Timeline – Revenue plans to phase in the new system as follows:
- Phase 1 – November 2028:Launch phase – large corporates begin issuing domestic B2B e-invoices and reporting in real time for domestic B2B transactions.
- Phase 2 – November 2029:Expands to all VAT-registered businesses engaged in EU cross-border B2B trade and who benefit from the 0% VAT rate for such trade.
- Phase 3 – July 2030:Full implementation under ViDA – all cross-border B2B transactions must follow e-invoicing and real-time reporting rules.
NOTE: From November 2028, all Irish businesses must also be able to receive e-invoices from their suppliers, even if they are not yet required to issue them.
What is E-invoicing
A structured electronic invoice (e-invoice) is a digital invoice created and transmitted in a standardised format, such as XML or UBL, that allows accounting and financial software to automatically process it without human intervention.
What this means for your business
The VAT Modernisation Programme will gradually change how invoices are created, sent, and reported.
Businesses will need to ensure that:
- Accounting and ERP systems can issue and receive e-invoices in structured formats.
- Invoice data can be transmitted directly to Revenue in real time.
- VAT records are stored digitally in line with updated compliance standards.
So, watch out for the GUIDELINES. Revenue has confirmed that detailed technical specifications and testing guidance will be released well before each stage of the rollout, allowing time for preparation.
Why the change
This is part of a broader move across Europe to modernise how VAT is managed. The new system is designed to:
- Reduce VAT fraud and close compliance gaps.
- Speed up reporting and reduce administrative work.
- Improve accuracy and consistency across EU VAT systems.
Prepare Now
While 2028 may feel a long way off, early preparation will make the transition much smoother.
- Review your accounting and invoicing software for e-invoicing compatibility.
- Talk to your software provider about upcoming integrations.
- Map your VAT reporting process to identify where real-time data can be introduced.
- Engage with your tax adviser to plan your readiness timeline.
As always, get in touch with your accountant/tax adviser to discuss how VAT Modernisation will affect your business and how they can support your preparation for e-invoicing and real-time reporting.
MF 31/10/25
