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Value-Added Tax Public Consultation/ Extended Closing Date

 Irish Revenue has launched a Public Consultation on modernising Ireland’s administration of Value-Added Tax (VAT)

In light of considerable digital advances in the business environment in recent years, Revenue is exploring the introduction of real-time digital reporting for VAT, supported by electronic invoicing. Digital technology offers the possibility of redesigning how the Revenue Commissioners administer VAT to align a business’s VAT compliance obligations more closely with the normal business processes.

The focus of this initial consultation is the modernisation of Business to Business (B2B) and Business to Government (B2G) VAT reporting, supported by eInvoicing.

Revenue is interested in the views of all VAT stakeholders on these matters therefore they are inviting all VAT registered-businesses to respond to their consultation.

Furthermore, VAT is an EU tax and at EU level, discussions are currently underway on the European Commission’s VAT in the Digital Age (ViDA)1 proposals which plan to introduce similar developments in respect of cross-border transactions between Member States.

This EU ViDA proposal will mean that an Irish business who sells to or buys from another business inthe EU will be required to issue /accept an eInvoice and in realtime onward report details from the eInvoice directly to Irish Revenue (replacing the current reporting requirements -the VIES Statements). This will bring significant changes for businesses buying and selling within the EU. To ensure efficiencies for businesses, Revenue’s proposed domestic system will be fully aligned with the EU proposals.

Irish Revenue want to develop a forward‐thinking VAT reporting system that works well for the business community, no matter how small or large your business is and that will also deliver a modernised system that will support Revenue in administering VAT more effectively.

Revenue wish to understand and consider your views on what challenges you envisage in the proposal to adopt real‐time B2B and B2G reporting supported by eInvoicing. This is an opportunity for the SME business community to help shape the future of a modernised VAT reporting system.

The Consultation paper provides further context on why Revenue are undertaking this consultation.  

The Consultation questions include two Sections, A and B.  

The questions in Section A ask for your views on real-time digital VAT reporting and eInvoicing. In Section B, Revenue are encouraging businesses to tell them about your business. This will help them to understand the context for your responses in Section A. Revenue will treat your Section B business-specific replies in the strictest confidence.

Alternatively, if you do not wish to use the online link, you can respond
with comments by email to: vatmodernisation@revenue.ie

they are encouraging all VAT registered-businesses to respond to this VAT Public Consultation and share your observations on the future of a modernised VAT real-time reporting system supported by eInvoicing.

 1 https://taxation-customs.ec.europa.eu/taxation-1/value-added-tax-vat/vat-digital-age_en

This consultation has been extended until 31 January 2024. Please, find link here.