Understanding the EU VAT in the Digital Age (ViDA) Reforms: Key Points for Irish Businesses

The EU’s VAT in the Digital Age (ViDA) package will enter into force on 14 April 2025 and will be rolled out in stages. ViDA has been called the biggest VAT reform since the Single Market, but what is it and what does it mean for Irish businesses?

There are three pillars to the ViDA package:

	With effect from	Key Points
Pillar 1 – Digital Reporting Requirements & eInvoicing	1 July 2030	eInvoicing will be mandatory for intra-Community B2B and B2G transactions Data from the eInvoice must be reported in real-time to revenue authorities Withdrawal of VIES returns/ EC Sales List reporting
Pillar 2 – Updated rules for the platform economy	1 July 2028 (voluntary) 1 July 2030 (mandatory)	Platforms facilitating supplies of passenger transport or short-term accommodation will become responsible for collecting and remitting VAT to tax authorities when their users do not
Pillar 3 – Single VAT Registration	1 January 2027	OSS Scheme extended to include B2C supplies of electricity and natural gas
Pillar 3 – Single VAT Registration	1 July 2028	OSS Scheme further extended to include B2C supply and install contracts, and certain domestic supplies of goods and services by taxable persons not established in the Member State of consumption New OSS module to report intra-Community movement of own goods Mandatory reverse charge on B2B services received from non-established suppliers

Explanatory notes with detailed guidance on how ViDA should be implemented are currently being drafted at EU level. It is expected that Irish Revenue will publish implementation guidance for Irish businesses during 2025. Aligned with this, Irish Revenue is looking to modernise Ireland’s administration of VAT generally so there could be further changes to the Irish VAT system.

How Should Irish Businesses Prepare for ViDA Changes?

Irish businesses selling goods or services within the EU should take this opportunity to evaluate how the ViDA package will affect their VAT processes and registrations and take necessary actions to ensure they are ready for the ViDA changes.

Please contact us if you require assistance with preparing for these changes.