Real-time digital reporting for VAT – we want to hear from you

As previously reported, Revenue has launched a public consultation on Value-Added Tax (VAT) modernisation. Revenue’s objective is to introduce real-time digital transaction-level reporting for business-to-business (B2B) and business-to-government (B2G) trade, supported by mandatory electronic invoicing (e-invoicing) for such transactions. The proposed changes would be significant for all businesses, requiring changes not only to their VAT processes but to their wider finance and systems infrastructure. 

The consultation opened on 13 October 2023 and closes on 12 January 2024. The Institute, under the auspices of the CCAB-I, is responding to this consultation. Members wishing to provide input can email us. 

This consultation phase concentrates on B2B and B2G reporting. It does not consider Business to Customer (B2C) transactions, nor does it look at other matters, such as the approach to VAT payment/repayments and accounting for VAT. These will be among the topics covered in future consultations.

Revenue is interested in the views of all businesses and their agents, software providers, accountants, bookkeepers, representative bodies, and other stakeholders regarding the development of a new real-time digital VAT reporting system. The consultation provides a list of questions for consideration. The questions are not exhaustive, and views are welcome on some or all of the questions and any other relevant matters.

The questions asked are summarised below:

1. What are your views on the proposal to introduce real-time reporting for B2B and B2G transactions?

    

2. What matters should be considered in planning for a transition to a new VAT Reporting system?

    

3. If your business is currently subject to a VAT reporting programme in another EU or non-EU country, can you please share best practice, recommendations or lessons learnt?

    

4. Have you any observations, concerns or recommendations on a move to mandatory electronic invoicing for B2B & B2G domestic VAT transactions?

    

5. Revenue is particularly interested in hearing views from businesses that are already engaged in e-invoicing Public Bodies within Ireland or engaged in B2B e-invoicing throughout Europe and beyond. How did you prepare and what challenges prevailed in your preparations for e-invoicing?

    

6. What suggestions would you offer in Ireland’s arrangements for a mandatory B2B and B2G e-invoicing programme?

    

7. Revenue is cognisant that small businesses may have different perspectives and requirements to large businesses, so what information prompts would you find useful for businesses in completing the VAT return?