Blog, Taxes

Ireland’s New VAT Modernisation Regime – Phase one

Heap of euro money bills in stationery clip on papers with calculations and receipts close up. Business and accounting concept
Heap of euro money bills in stationery clip on papers with calculations and receipts close up. Business and accounting concept

By Elizabeth Kelly, 19th February 2026

Revenue Announcement 10 February 2026 – Large companies confirmed to fall within phase one of Ireland’s VAT Modernisation Regime

The Irish Revenue confirmed on the 10th of February 2026 that businesses dealt with by its Large Cases Division and with an establishment in Ireland will fall within the scope of phase one of Ireland’s VAT modernisation regime.

This follows on from Revenue’s October 2025 announcement of plans to implement a major VAT modernisation programme in Ireland.  This VAT modernisation programme was initiated to implement the European Union’s VAT in the Digital Age (ViDA) requirements.  The ViDA initiative represents a major overhaul of the European Union (EU) Value-Added Tax (VAT) system and aims to modernise VAT systems across Europe to better support how businesses trade today, while strengthening the fight against VAT fraud at the same time.

From the 1st of July 2030, the ViDA Directive will require businesses which trade cross-border with other EU businesses to implement eInvoicing and real-time reporting to tax authorities.  Ireland has adopted a 3-phase rollout approach to the ViDA initiative to help Irish businesses and Revenue adequately prepare for the 1st of July 2030.

Phase One of the VAT Modernisation Regime in Ireland

Last week, Revenue confirmed that a business will fall within the scope of phase one of the Irish VAT modernisation regime if it is considered to be a large company for the purposes of ‘eInvoicing’.  A ‘large company’ for this purpose is one which:

  • is a VAT-registered business whose tax affairs are dealt with by the Large Corporates Division in Revenue.
  • is established or has a fixed establishment in Ireland.

Phase one will commence on the 1st of November 2028.  From this date onwards, all VAT-registered large companies will be required to issue eInvoices in respect of domestic B2B transactions and report a subset of relevant data to Revenue in respect of these transactions.

The ViDA Directive requires eInvoice structures to comply with European Standard EN16931 using structured data formats, which enable automatic processing, such as XML. Current invoicing practises, including PDF invoices or scanned paper invoices, will not be acceptable under these strict new VAT compliance requirements.

From the 1st of November 2028, all businesses in Ireland must be able to receive structured eInvoices, regardless of their size.  Therefore, even if a business is not yet required to issue eInvoices under the earlier phases of the regime, it will need to have the appropriate systems in place to receive these eInvoices in a structured electronic format.

Phases two and three of the VAT Modernisation Regime in Ireland – Details in relation to these phases will be confirmed by Revenue at a later date.

  • Phase two is currently scheduled to commence in November 2029.  This phase will extend obligations to all VAT-registered businesses engaging in cross‑border EU B2B transactions that benefit from the 0% VAT treatment.
  • Phase three is currently scheduled to commence on the 1st of July 2030.  On that date, the complete implementation of EU ViDA requirements for all cross-border EU B2B transactions will become mandatory across all Member States.

Preparing for Phase One

If your company falls within the scope of phase one, you should begin to prepare now by:

  • reviewing your current invoicing, accounting, or ERP systems.
  • ensuring that you have all of the relevant data for businesses in your supply chain.
  • engaging with your software provider to confirm technical readiness.
  • ensuring that your internal teams and departments understand the new requirements.
  • planning for any necessary updates.

For all businesses in Ireland, regardless of the size of the sector, you should begin to prepare by ensuring you have the appropriate systems in place to receive eInvoices in a structured electronic format.

What Can Businesses Expect?

Revenue will be contacting all VAT-registered large corporates over the next few weeks in order to confirm their inclusion in phase one.  Revenue will also publish guidance, technical specifications, and support materials over the next few months in relation to this new regime.

How Can We Assist You?

If you have any questions in relation to the new VAT Modernisation Regime and how it might affect your business, we at Company Bureau would be delighted to assist you. Contact us today through our online contact form.

Disclaimer: This article is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Company Bureau for any action taken or not taken in reliance on the information set out in this article. Professional or legal advice should be obtained before taking or refraining from any action as a result of this article. Any and all information is subject to change.

Elizabeth Kelly