Context
Ireland has announced a major modernisation of its VAT system with the introduction of mandatory electronic invoicing and real-time VAT reporting. In its recent paper VAT Modernisation: Implementation of e-Invoicing in Ireland, the Revenue Commissioners set out a phased timetable for the introduction of e-invoicing:
- November 2028: large corporates – domestic B2B
- November 2029: all VAT-registered businesses engaged in intra-EU B2B trade
- July 2030: full cross-border B2B e-invoicing and real-time reporting across the EU
Although these dates may appear distant, the reforms mark a profound shift in how VAT will be administered and reported. They form part of a wider global movement towards digital, real-time tax reporting.
The international direction of travel
Over the past decade, tax authorities worldwide have re-engineered VAT and GST systems to harness transaction-level data. Many countries already require structured e-invoicing or near real-time reporting. Belgium, Poland and France will follow in 2026. Beyond Europe, early adopters such as Mexico and Brazil have demonstrated that digital controls can dramatically narrow the VAT gap and improve visibility throughout supply chains.
Ireland’s initiative therefore reflects a clear international trend of the migration from paper or PDF invoices towards structured digital data, transmitted directly to tax authorities. The intention is to reduce fraud, enhance compliance, and enable both business and government to access consistent, reliable data in real time.
What this means for Irish businesses
The move to e-invoicing will require businesses to issue and receive invoices in structured electronic form (rather than PDFs) and to transmit key data directly to Revenue. This change will demand more than a technical upgrade. Finance, tax and IT teams will need to work together to ensure that systems can generate and receive compliant invoice data.
Real-time reporting also transforms compliance dynamics. Errors or inconsistencies that once surfaced weeks later through VAT returns will now be visible almost instantly. Businesses will need to strengthen internal controls, data governance and cross-functional coordination to maintain accuracy and manage risk.
While the focus is on compliance, there are strategic benefits too. Early adopters across Europe report efficiencies from automated invoicing, improved cash-flow visibility and faster reconciliation. For multinational groups, Ireland’s alignment with ViDA presents an opportunity to standardise VAT processes and technology platforms across multiple jurisdictions.
The UK perspective
In the UK, HM Revenue & Customs (HMRC) and the Department for Business and Trade (DBT) jointly launched a public consultation in February 2025 to gather views on standardising e-invoicing across businesses and the public sector. The consultation, which closed in May 2025, sought feedback on key issues including whether e-invoicing should be mandatory or voluntary, what model and technical standards should apply, and whether real-time digital reporting should accompany it.
With responses now under review, the government is widely expected to announce its preferred policy direction in the near term.
For businesses operating across both Ireland and the UK, this convergence is significant. The UK may not yet have a firm rollout date, but the policy signal is clear: e-invoicing is on the agenda. Early action to align invoicing and reporting systems in Ireland will serve companies well when the UK regime is formalised.
Actions to consider
Businesses should begin planning now. A practical first step is to assess current invoicing processes, data flows and system capabilities. Understanding whether your ERP and finance systems can produce structured invoices, and receive them from suppliers, will be critical.
Given the long lead-time, there is an opportunity to integrate e-invoicing projects with broader finance transformation or automation initiatives. This will help ensure compliance while also realising operational efficiencies.
Final thoughts
The introduction of mandatory e-invoicing in Ireland is part of a decisive global movement towards digital VAT administration. The destination is clear: tax reporting will become real-time, data-driven and fully integrated with business systems.
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