Ireland: Public consultation on VAT e-invoicing & digital reporting

On 10th October, the Irish finance minister announced that Irish Revenue will shortly launch a public consultation as to how digital advances can modernise Ireland’s existing VAT Invoicing & Reporting systems: opening the door to a domestic e-invoicing & digital reporting regime in Ireland.

The consultation will ask for Irish taxpayer’s views on the recent advancements in technology in the tax reporting arena, feeding into Revenue’s overall VAT reporting modernisation strategy.

Whilst clearly at an early stage, we expect Revenue’s overarching review into this area will take account of the various domestic e-invoicing & digital reporting models which have been recently proposed in other EU member states, and how those may work for taxpayers in Ireland. Close attention is also no doubt being paid to the ongoing deliberations around the EU Commission’s ViDA package, and the e-invoicing & digital reporting regulations to be introduced as part of those proposals; with the EU considering the harmonisation of domestic digital reporting schemes, and thus potentially impacting on EU Member states’ existing plans around same.

Although we do not anticipate the release of further detail for some time, the opening of this consultation clearly indicates that Ireland wishes to join the growing number of EU member states who are looking to implement domestic e-invoicing & digital real-time reporting regimes; in order to increase VAT compliance and assist in the fight against fraud, in their respective jurisdictions.