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Revenue publishes its report on VAT shake-up

Revenue has published a report setting out the key findings from the initial stage of its public consultation on modernising Ireland’s administration of VAT. 

The consultation considers the possibility, through advancements in digital technology, of redesigning the way in which VAT is administered in Ireland, to align compliance obligations more closely with normal business processes.

The initial stage of the consultation, which launched in October 2023, focused on the modernisation of Business to Business (B2B) and Business to Government (B2G) VAT reporting, supported by e-Invoicing.

Responses

Over 1,100 responses were received, most of which came from businesses within the VAT net. Tax advisory and accountancy firms, professional representative groups, software providers and business associations also made submissions.

VAT modernisation is a Revenue priority – to support business compliance and enhance the effectiveness of tax administration.

The tax authority says that business input will play an instrumental role in shaping the discussion surrounding VAT modernisation, and that all suggestions will be reviewed and considered as the programme advances.  

Further consultations and other public engagement will follow, as reform proposals take clearer shape, are tested, refined and put into operation.