On 25 March 2025 the ViDA package was published in the Official Journal of the EU marking a pivotal moment for VAT in the EU. ViDA is a set of legislative reforms aimed at modernizing the EU's VAT system to better align with technological advancements and address challenges such as VAT fraud and the platform economy. 

The ViDA updates aim to create a more efficient and business-friendly VAT system, benefiting SMEs by reducing administrative burdens and compliance costs. 

Irish Revenue conducted a public consultation from October 2023 to January 2024 to gather taxpayer insights. The consultation emphasised the practical concerns, as well as proposals for real-time digital VAT reporting and electronic invoicing and it is expected that this will be considered when Irish Revenue publish related rules applicable in Ireland. 

The package will officially come into force on 14 April 2025 with implementation timelines extending into the 2030s. The initiative is structured around three pillars:

• Pillar 1:   Digital Reporting Requirements (DRR)
• Pillar 2:   Platforms as Deemed Suppliers (PDS)
• Pillar 3:  Single VAT Registration (SVR)

Download VAT in the Digital Age (ViDA) Pillars:

Summary of Actions and Timelines for Ireland

Irish Revenue has not yet announced a specific implementation date for the reforms, but an announcement is expected to be imminent. It is however anticipated that a phased roll out approach will be taken based on the feedback received at the public consultation.

The impact of the new measures on VAT related systems of a business depends on the activities being carried on. While the necessary charges will be a product of any assessment of those activities, the timeline for completion and implementation of changes will be fixed, meaning that businesses will have timelines within which to implement required changes.

Businesses need to have correct systems in place. This is to comply with its VAT related obligations and also enable them to continue to operate with the minimum of disruption. It is therefore essential that the appropriate actions are taken in time for the necessary system, AP and AR updates to be determined, implemented, tested and ready to go by the relevant deadlines.

Contact Us:

If you have any queries in relation to this and the impact on your business, please contact John Moore or Fiona O’Brien of our VAT Team at RBK who will be pleased to help. 

• John Moore:  VAT Director, (01) 644 0100
• Fiona O'Brien: VAT Manager, (01) 6440100

Disclaimer

While every effort has been made to ensure the accuracy of information within this publication is correct at the time of going to print, RBK do not accept any responsibility for any errors, omissions or misinformation whatsoever in this publication and shall have no liability whatsoever. The information contained in this publication is not intended to be an advice on any particular matter. No reader should act on the basis of any matter contained in this publication without appropriate professional advice.