VAT in the Digital Age package

What is ViDA?

The VAT in the Digital Age package (ViDA), an EU Directive, is designed to modernise the EU VAT system and represents a fundamental upcoming change for Irish businesses.  

Effective from 1 July 2030, businesses engaging in EU cross-border transactions will be required to shift from paper invoicing to e-invoicing and comply with real-time digital reporting to EU tax authorities. Under ViDA, businesses will be required to issue an e-invoice in an EU wide structured format.  

Budget 2026 and Irish Revenue update

Following the Budget 2026 announcement on 7 October, Irish Revenue published its phased implementation approach to e-invoicing in Ireland on 8 October 2025.

To allow sufficient time for businesses to comply with the 1 July 2030 mandatory introduction, Irish Revenue is proposing a phased rollout approach as follows:

• Phase 1 – by November 2028, VAT-registered large corporates will be required to implement mandatory e-invoicing and real-time digital reporting for domestic B2B transactions.
• Phase 2 – by November 2029, the domestic B2B transaction obligation will extend to all VAT-registered businesses engaged in EU cross-border transactions.
• Phase 3 – by July 2030, mandatory e-invoicing under the EU ViDA Directive will be required for all cross-border B2B transactions across the EU.

While the above dates outline when e-invoices should be issued for supplies, all businesses should be ready and able to receive e-invoices from its suppliers with effect from November 2028.

Why a phased rollout?

This approach should allow Irish businesses, from large corporates to SMEs, to adopt early in advance of the 1 July 2030 mandatory introduction date and bring Ireland in line with its EU counterparts who have already introduced mandatory e-invoicing measures. To date, Ireland is one of the few EU Member States yet to introduce e-invoicing or real time reporting in some form.  

Ireland’s move to e-invoicing and early adoption of digital technologies will fundamentally transform the way Irish businesses manage VAT compliance and is aimed at reducing the compliance burden faced by businesses and enabling Revenue to identify and prevent VAT fraud.  

What’s next?

While November 2028 may seem like some time away, businesses should start to consider how the above proposals will impact their business. In order to become compliant with the proposed changes, systems and invoicing procedures will need to be tailored. Given the various stakeholder involvement and potential updates required to internal systems, this can be a timely process, and it is important to ensure reporting obligations can be met without interrupting business as usual.  

Business impacted by these changes will be contacted directly by Revenue and updates will be shared through various channels including the Tax Administration Liaison Committee (TALC) on which RSM is represented. However, we recommend businesses start thinking about the impacts e-invoicing and real time reporting will have on your business as well as its systems and start planning for November 2028 today.  

At RSM Ireland, we have practical expertise that can help you navigate this transition. Our Indirect Tax and Tax Technology teams are here to help and support you and your business through the modernisation process.  

Should you have any queries in respect of the above or the implications for your business, please contact Barry McNamara or Áine Casey.