Budget 2026

Following an announcement made on Budget Day, the Department of Finance has published an Action Plan for the reform of Ireland’s Taxation Regime for Interest. The Action Plan was designed considering the feedback received during the comprehensive public consultation on the tax treatment of interest in Ireland which was launched in September 2024. The responses to the public consultation outlined the need for a fundamental overhaul of the existing framework governing the taxation and deductibility of interest. The Action Plan outlines a phased approach for implementing reforms aimed at creating a more streamlined system that enhances Ireland’s competitiveness while safeguarding the tax base. A feedback statement will be issued in November, which will focus on the underlying framework for the taxation and deductibility of interest in Ireland. The responses will inform legislative changes in Finance Bill 2026 and further reform areas will be addressed in subsequent phases.

In case you missed it last week, you can find our full coverage of Budget 2026 in our Special Budget 2026 Tax Newsletter which issued last week following the announcement of this year’s package. You can also find more information on all-things Budget in the Institute’s Budget 2026 Hub.

During his Budget 2026 address, Minister Donohoe announced that Revenue will begin a gradual introduction of electronic invoicing (e-Invoicing) and real time reporting for businesses trading cross-border with other EU businesses. Following this announcement, Revenue has published a paper outlining details of its preparations for implementing the European Union's VAT in the Digital Age (ViDA) requirements. From July 2030, businesses that trade cross border must adopt these new e-Invoicing systems to retain access to zero percent VAT arrangements that support single market trading. Revenue will roll out the adoption of the directive in phases, starting in November 2028 with large VAT-registered corporates being required to implement mandatory e-Invoicing and real time reporting for domestic business-to-business (B2B) transactions. From November 2029, under phase two, mandatory e-Invoicing and real-time reporting for domestic B2B transactions will be extended to all VAT-registered businesses who engage in cross-border EU B2B trading. Finally, under phase three, from July 2030, mandatory e-Invoicing and real-time reporting will apply to all cross-border EU B2B transactions across all member states.     From November 2028, all businesses must have the capability to receive e-Invoices in the required structured format, even if they are not yet mandated to issue them under the phased rollout. Under ViDA, suppliers must issue e-Invoices within ten days of the transaction and digitally report specified data to their national tax authority. The new system will eliminate the reporting requirement of the monthly VIES returns, further reducing the administrative burden for businesses. Revenue has confirmed that all stakeholders will receive support throughout the transition, with additional opportunities for engagement as the reforms evolve, undergo testing, and are implemented. The Institute, under the auspices of CCAB-I had responded to the public consultation on Modernising Ireland's Administration of VAT – Real-time Digital Reporting and Electronic Invoicing in January 2024 and continues to engage with Revenue on the matter via the TALC forum.