Revenue has issued a press release confirming that text messages claiming to come from them and which seek personal information from taxpayers are a scam. Revenue confirmed that they never request personal email through text, email or pop-up windows. Revenue advises that any emails or text messages which appear to be from Revenue and are suspected to be fraudulent or a scam should be deleted. Taxpayers should contact their local Revenue office to verify the status of any expected tax refunds. Individuals who have responded to these fraudulent emails or text messages and provided personal information are advised to contact their bank or credit card company immediately.

The annual Special Assignee Relief Programme (SARP) employer return for 2024 must be submitted to Revenue on or before 23 February 2025. The return should include details of all employees who availed of SARP relief for the period 1 January 2024 to 31 December 2024. Details on the filing of the return through Revenue’s online eSARP portal are available on Revenue’s SARP webpage.

The OECD Economic Survey of Ireland 2025 was launched last week at an event hosted by the Institute of International and European Affairs. The report notes that the domestic economy in Ireland remains robust primarily due to strong labour market performance. However, it notes that caution needs to be exercised when addressing spending pressures arising from an ageing population, infrastructure deficits, climate change and housing shortages. The key messages from the survey are as follows: Fiscal restraint is called for in the near term. At the same time, enhancing the fiscal framework, increasing spending efficiency and improving the medium-term resilience of tax revenues will be key to ensuring long-run fiscal sustainability. Preserving Ireland’s cost competitiveness requires a reduction in labour and skills shortages, lower legal costs and easing of the administrative burdens on businesses. Speedier implementation of plans and pricing emissions more uniformly across sectors is central to achieving Ireland’s ambitious climate targets. Policies to increase housing density, improve land use and development, raise productivity and lower costs in the construction sector are needed in order to boost housing supply. Commenting on the survey findings, Minister for Finance, Pascal Donohoe  said: “Our economy is in good shape and this gives us the resources and the bandwidth to address many issues. But continued economic success is not a given. The world is changing; the global economy is changing; our own economy is changing. It is incumbent upon us all – but especially those in the public sector – to prepare for these changes.”

Last September at the Labour Party Conference the Chancellor of the Exchequer announced that a consultation would be launched on electronic invoicing (e-invoicing). This consultation has now been launched and will run for 12 weeks until 7 May 2025. The Institute will be responding to this and will be engaging with members on this important issue. In the meantime, members can also email tax@charteredaccountants.ie with their views. The launch of this consultation was accompanied by a Press Release. The consultation process is accepting written responses by email or alternatively an online form can be completed. Anyone wishing to join the round table events on this consultation should email einvoicingengagement@hmrc.gov.uk. Chartered Accountants Ireland has already highlighted the significance of this change to HMRC. Ireland has been consulting on the modernisation of its VAT regime including e-invoicing which the Institute responded to in January this year highlighting the challenges that SME businesses in particular will face. In a broader context, should this proposal proceed in the UK, the timetable for its introduction will need to be very carefully considered as many SMEs are facing significant change in other areas of the UK tax system in the future; the payrolling of benefits in kind from April 2026 and the mandation of Making Tax Digital for income tax from the same date to name but two.

HMRC’s MTD user research programme are looking for some help and the MTD software choices page has also been updated to add an additional software provider for 2024/25 bringing the total currently available to 16. HMRC is seeking the following types of volunteers to assist with MTD user research: Those who report partnership income, and Those who report foreign income (overseas pensions, dividend income, social security benefits and royalties etc). Volunteers will be interviewed to understand key behaviours, needs and difficulties. They will also be involved in conducting usability testing on a prototype for redesigned journeys within Self-Assessment. If you would like more information on taking part, please email tax@charteredaccountants.ie in the first instance and we will put you in touch with HMRC’s MTD team.

In this week’s miscellaneous updates, the February 2025 Employer Bulletin has been published and HMRC has now published its revised interest rates for late and early payments. In a tongue in cheek Press Release ahead of Valentine’s Day, HMRC is encouraging anyone in love with their side hustle to check if you need to tell HMRC about your income from online platforms. The Public Accounts Committee has published a report on HMRC services and the National Audit Office reports on the cost of the tax system. The Charter for Budget Responsibility has been approved by Parliament and finally, the Institute of Fiscal Studies has published an article looking at how changes in UK Government revenues compare with other advanced economies. February 2025 Employer Bulletin The latest Employer Bulletin is highlighting a range of issues relevant to employers including the following which HMRC has asked us to specifically highlight: “Statutory Neonatal Care Leave and Pay The government intends to introduce a new statutory entitlement to Neonatal Care Leave and Pay from 6 April 2025. This will provide employed parents whose babies are admitted to neonatal care with a day-one employment right to take up to 12 weeks off work, depending on the length of time their baby is in neonatal care. Eligible parents will also be entitled to up to 12 weeks of statutory pay.   The Department for Business and Trade laid the regulations to implement this right in January 2025. Subject to Parliamentary agreement, the new entitlement will apply to babies born on or after 6 April 2025.   A summary of the entitlement is provided in the following sections. Full guidance will be available soon.   Eligibility This will be available to a broad range of ‘parents’, including adoptive parents, parents who are fostering to adopt and the intended parents in surrogacy arrangements.   Employed parents whose babies are admitted into neonatal care up to the age of 28 days, and who have a continuous stay of seven full days or more, will be entitled to leave as a new day-one employment right. Eligible parents will be able to take a minimum of one week, and a maximum of 12 weeks, depending on how long their baby is in neonatal care. This is on top of their other parental entitlements such as maternity, paternity and shared parental leave.   For eligible parents to also qualify for Statutory Neonatal Care Pay, they must also meet continuity of service and minimum earnings tests. This means the eligible employee must have worked for their employer for at least 26 weeks ending with the relevant week and earn on average at least £125 per week before tax from April 2025.   Notice and information requirements Leave and pay can be taken in 2 Tiers, Tier 1 and Tier 2. The notice and evidence requirements for each Tier are: Tier 1 - is a period when the child is still receiving neonatal care, and including one week after the care has ended.  Tier 2 - is the period outside the Tier 1 period and before the end of 68 weeks from the date of the child’s birth.  Neonatal Care Leave notice periods An employee will need to give notice to take Neonatal Care Leave (NCL). The length and format of notice for leave will vary depending on whether the employee intends to take leave in Tier 1 or Tier 2.   For leave taken in Tier 1, the employee will need to notify their employer before they would be due to start work on the first day of absence, or as soon as possible thereafter. The notice does not need to be in written form.      For leave taken in Tier 2, the employee will need to provide notice at least 15 days before the start of a period of one week leave. For a period of 2 or more weeks of leave, the employee will need to provide notice at least 28 days before the start of the leave. The notice must be in written form.   Neonatal Care Pay notice periods An employee must provide written notice for Tier 1 Neonatal Care Pay (NCP) within 28 days beginning with the first day of the week in which NCP is being claimed.   For Tier 2 NCP, an employee must give a notice at least 15 days in advance in order to claim pay for one week’s leave. Notice must be given at least 28 days in advance to claim pay for 2 or more weeks of leave.   Neonatal Care Leave and Neonatal Care Pay information requirements At the same time, to receive leave and or pay for leave taken in either Tier 1 or Tier 2, an employee must provide the following information to the employer:  the employee’s name the date of the child’s birth if applicable, the date of the child’s placement with the adopter or prospective adopter if applicable, the date of the child’s entry into Great Britain to live with the overseas adopter the date the child started to receive neonatal care, or each date if the child received neonatal care on 2 or more separate occasions if the child is no longer receiving neonatal care, the date that the care ended if it is the first time a notice is being given, a declaration that the employee meets the parental relationship criteria that they, the employee, has cared for or intend to care for the child during the week or weeks to which the notice relates The Neonatal Care (Leave and Pay) Act 2023 applies only to Great Britain. At the current time, no legislation to introduce Neonatal Care Leave and Pay has been introduced in Northern Ireland, therefore, the measure will not apply in Northern Ireland.   Further information is available at: Pay Regulations: https://www.legislation.gov.uk/ukdsi/2025/9780348268041/contents Leave Regulations: https://www.legislation.gov.uk/ukdsi/2025/9780348268034/contents GOV.UK Press release: https://www.gov.uk/government/news/parents-to-receive-day-one-right-to-neonatal-care-leave-and-pay.” Public Accounts Committee report on HMRC services Last month the House of Commons Public Accounts Committee published its report ‘HMRC Customer Service and Accounts 2023-24’. The reports outlines HMRC’s performance in delivering customer service and draws six conclusions from its findings whilst also making six accompanying recommendations for improvement. A response is expected from the Government within two months.   National Audit Office report on the cost of the tax system The National Audit Office has published its report ‘The administrative cost of the tax system’. The report concludes, not surprisingly, that the cost to HMRC of running the tax system is increasing. In part this is due to rising complexity in the different tax regimes and taxpayer numbers, but it is also due to the additional cost of introducing and remediating digital systems and moving to a more highly-skilled workforce. HMRC does not measure the overall efficiency of its administration of the tax system, but there is evidence from different parts of the system that there is scope for increased efficiency and productivity. Although enhanced digitalisation has increased revenue, it does not seem to be reducing running costs. Customer service performance has also declined and efficiency targets have proved difficult to achieve without compromising services. Charter for Budget Responsibility Last month the House of Commons voted to approve the Charter for Budget Responsibility, the Government’s new fiscal and debt management policy. The accompanying press release sets outs that “through the Charter, fiscal and economic stability will be enhanced by confirming the Government’s intention to move to one major fiscal event per year” This seems to confirm that there will only be one major fiscal event every year in the autumn therefore major tax changes are unlikely to be announced at the Spring Statement on Wednesday 26 March 2025. Institute for Fiscal Studies article on Government revenues The Institute for Fiscal Studies recently published an article entitled ‘The UK’s near-record Government revenues are not uncommon internationally’. This considers how changes in UK Government revenues compare with that of other advanced economies, including the G7 and EU27. The article notes that although these are at record high levels, the UK has only recently begun to catch up with its peers in terms of average revenue as a percentage of Gross Domestic Product.  

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. Miscellaneous guidance updates and publications Report a problem using the Customs Declaration Service, Transit newsletters — HMRC updates, Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, Manage your Trader Goods Profile, UK Trade Tariff: duty suspensions and autonomous tariff quotas, Trade with the UK as a business based in the EU, Check how to move goods through ports that use the Goods Vehicle Movement Service, Create a goods movement reference, 9. Transport Internationaux Routiers, 6. Simplifications, 11. Specimen Management System, 8. Contraventions and Civil Penalties , 1. Introduction, 2. Status of goods - Transit Manual Part II refers, 3. Guarantees (Transit Manual Part III refers), Transit Manual Supplement, Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service, Use the New Computerised Transit System, Customs Declaration Completion Requirements for The Northern Ireland Protocol, Notices made under the Taxation (Cross-border Trade) Act 2018, and Notices under The Customs Transit Procedures (EU Exit) Regulations 2018.

The OECD is to publish a consolidated report on Amount B later this week. As part of the two pillar solution agreed by the OECD/G20 Inclusive Framework on BEPS, Amount B provides for a simplified and streamlined approach to the application of the arm’s length principle to in-country baseline marketing and distribution activities, with a particular focus on the needs of low-capacity countries. This consolidated report will include all publications on Amount B by the Inclusive Framework in 2024.

Healthy Strategies to Combat Stress and Boost Your Well-Being In today’s fast-paced world, stress isn’t just an inconvenience it’s a silent epidemic. It seeps into every part of our lives, affecting our health, our productivity, our relationships, and even the way we show up for ourselves. Chronic stress doesn’t just weigh on our minds it impacts our bodies, too. And the consequences are often more severe than we realise. But what if the solution to stress doesn’t require an overhaul of your entire life? What if it’s about making small, 1% improvements every day—simple, manageable shifts that transform your well-being without overwhelming you? The High Cost of Stress: What’s Really Happening to Our Bodies? We hear a lot about the “dangers of stress,” but do we truly understand its toll on our health? Stress is linked to over 80% of doctor visits worldwide, contributing to a host of physical and mental health problems. From digestive issues to heart disease, the physical manifestations of stress are profound and the financial cost is staggering. In Ireland alone, stress-related absenteeism leads to the loss of 11 million workdays every year, costing the economy €1.5 billion. But the true cost of stress is personal. It impacts our relationships, our sense of self, and our overall well-being. Even more concerning, younger generations particularly millennials are on track to live shorter lives than their parents for the first time in modern history, largely due to lifestyle diseases tied to stress and poor health habits. While we can’t change the entire system, we can take charge of our own health. The good news is, the path to improvement doesn’t require dramatic changes. The solution is found in consistent, small steps—what I like to call the 1% approach. Why 1%? Small Shifts for Big Results You might be wondering: Can such tiny changes really have a meaningful impact? The answer is; absolutely. Let’s break it down: 1% of 24 hours is just 15 minutes. That’s it. Think about it just 15 minutes to breathe, stretch, journal, meditate, or take a mindful walk during your lunch break. When you commit to small, daily actions like this, over time they can shift the way you feel, the way you manage stress, and the way you take care of your body. By focusing on 1% improvements every day, you build habits that stick. This approach isn’t about overwhelming yourself with huge goals, it’s about showing up for yourself in manageable, meaningful ways. And the beauty of small changes is that they’re sustainable. Little by little, they lead to lasting transformation. Building Lasting Habits: Ability Over Motivation One of the biggest challenges people face when trying to make lasting changes is relying too heavily on motivation. We often think we need to feel inspired or have an overwhelming desire to act in order to make a change. The truth is, ability not motivation is the real key to success. Motivation can come and go, but the ability to create small, sustainable habits will carry you through. Instead of aiming for perfection or waiting for the “right” moment, start small. Focus on what you can do, not on an unrealistic, massive goal. The secret is consistency. Whether it’s taking 15 minutes to meditate, drink more water, or take a brisk walk, these small actions compound over time and before you know it, they become second nature. Scheduling: A Powerful Tool for Boundary-Setting and Self-Care In today’s digital world, it’s easy to feel like time slips through your fingers. The constant ping of emails, messages, and reminders makes it feel as though there’s never enough time for ourselves. But did you know that scheduling can be one of your most powerful tools for boundary-setting and self-care? When we schedule breaks, lunch hours, and time for clean rest and self-care, we take control of our day and, by extension, our lives. Scheduling isn’t about micromanaging every minute; it’s about intentionally carving out time for the things that matter most, including your mental and physical health. By setting aside time for rest, exercise, and mindfulness, we send a clear message to ourselves that we’re worth the investment. And here’s the kicker: Scheduling can actually reduce stress. When you plan your day thoughtfully rather than reacting to a constant stream of demands—you create space for balance, clarity, and self-compassion. It’s all about setting boundaries that protect your well-being, even in the busiest times. It’s time to take control—one small step at a time. Written by Róna Girvan for Thrive. Róna spoke at Thrive and the Cork Society’s Blue Monday Webinar, Balanced Living, 1% at a time, where she shared her 1% solutions to balanced living. You can watch the webinar on-demand here. Róna Girvan (Dr Róna Anderson) is a GP, Lifestyle Physician, and Life Coach. With a passion for empowering people to take control of their health and well-being, Róna combines her medical expertise with practical coaching strategies to help others lead healthier, more balanced lives. As a mother of two and a wellness advocate, she understands first-hand the challenges of juggling work, life, and self-care. Instagram: @the.balance.doctor email: thebalancedoctor2024@gmail.com.

As the new year unfolds, transforming vague resolutions into clear goals could help you achieve personal and professional success in 2025, writes Moira Dunne Turning the page from one year to the next brings a special energy. There is a feeling of opportunity, change and a chance to reset and restart. It is also a chance to build on your achievements in the year gone. A month into 2025, what can you do to ensure this is your year? Sometimes, we get weary of New Year’s resolutions and don’t stick to them. Turning those resolutions into real change can be challenging. A resolution without a plan is just a wish. Before you give up on what you promised yourself in January, here are some tips to help you turn your resolutions and wishes into real change this year. 1.  Remove ‘the vague’ to get started It is important to be clear about what you want to do to bring about real change. If your resolution is too vague, it will be easier not to start and procrastinate. Here are some examples: For a business goal, instead of saying, “Increase online presence for my business in 2025,” try, “By the end of January, increase use of LinkedIn by posting three times a week.” For a personal goal, instead of saying, “Get fit this year,” try, “Start weekly training to complete a 5km race in June 2025.” In these statements, you have added: A clear action A timeline A target to achieve Now it is easier to get started because you have clear tasks to work on. Once you get started, you will feel productive and motivated to keep going. 2. Identify what will help you Making changes can be hard and when motivation dips, we often find reasons not to continue. When your enthusiasm is high at the start of the year, this is the time to anticipate what you need to stick to your resolution. Buy the equipment, join the business network, download the running app, sign up for the training course and remove anything that may block your progress. 3. Be accountable Sometimes, external pressure helps us stay on track. You can create this accountability by telling others about your plan or displaying your goal on a board. For the business goal: Agree to update your progress on social media at the weekly team meeting. For the personal goal: Start training with a buddy or commit to regular club training nights. A financial commitment can be a great motivator, too. If you pay to join a business network, you will be more motivated to attend meetings. Registering for a 5km race will make you more likely to do it. Turn your goals into achievements Transforming your 2025 goals into tangible achievements is all about clarity, preparation and accountability. By replacing vague ambitions with precise, actionable goals, equipping yourself with the necessary resources and involving others to keep you on track, you’re not just hoping for change—you are making it happen. As you build on the successes of 2024, let this fresh start serve as a powerful reminder that every well-planned step enriches your personal and professional growth. Embrace the opportunities this year and turn your plans into progress. Moira Dunne is Founder of beproductive.ie

Sustainability in 2025 is entering a new era of regulation, scrutiny and adaptation. Russell Smyth outlines some of the key trends shaping ESG strategy in the corporate world. Sustainability is entering a new phase of regulation, scrutiny and strategic adaptation. With the first wave of Corporate Sustainability Reporting Directive (CSRD) reports set for release, companies will face heightened expectations for transparency and accountability. But CSRD compliance is just one piece of the puzzle. From the rise of artificial intelligence in environmental, social and governance (ESG) reporting to the shifting dynamics of greenwashing and ‘greenhushing,’ this year will bring significant changes to how businesses approach sustainability. Here are five key sustainability trends we expect to shape corporate strategies in 2025 and beyond. Businesses brace for scrutiny The release of the first wave of CSRD reports will happen this year, and these will be subject to a high level of scrutiny for their inaugural submissions. The heaviest critique will likely be directed at the methodologies behind double materiality assessment (DMA) approaches, given the several updates and amendments released by the European Financial Reporting Group since the conception of the CSRD. For the second wave of reporting organisations this year, there will be ample opportunity to learn from these initial sustainability statements. However, it is critical that any previous materiality exercises are aligned with the new DMA concept. Moving beyond ambitions While many corporates have felt compelled in recent years to announce high-level decarbonisation commitments, a significant number were arbitrary or made without credible plans to achieve them.  The advent of CSRD has changed this, with regulation now forcing corporates to back up these commitments with detailed, credible climate transition plans that will allow stakeholders to assess and monitor progress over time. Given CSRD implementation timelines, we expect a wave of such transition plans to be developed and published through 2025. Behind the green curtain Increased scrutiny on greenwashing last year led to numerous legal battles, particularly within the oil and gas, airline and fast fashion industries. Companies faced accusations of unsubstantiated net-zero claims and misleading marketing campaigns. This backlash has prompted a new wave of 'greenhushing', in which organisations under-communicate their sustainability efforts and quietly scale back commitments to avoid public scrutiny and reputational damage. This trend will continue with incoming regulations such as the CSRD, the European Union’s Green Claims Directive and the Enhanced Product Labelling Directive. These regulations will enforce transparency and accountability and ban the use of vague environmental claims, thereby enabling truly sustainable businesses to be fairly represented and allowing consumers to make informed purchasing and investment decisions.  Green fatigue ESG faces significant headwinds in 2025. The new US administration in the White House has pulled back on the green agenda, alongside a wider politicisation of sustainability.  We have already observed several large corporates retrenching on their sustainability actions, removing ESG roles from their boards, pulling out of Net Zero pledges and revising ambitious sustainability goals.  This trend isn’t surprising and reflects an inevitable “green fatigue” creeping in among corporates. Climate action requires short-term effort for long-term reward and makes it remarkably challenging for politicians and corporates focused on the short-term, to prioritise and adapt.  The EU’s introduction of mandatory sustainability reporting isn’t a coincidence. The EU recognises that legislation is the only way to encourage widespread adoption of robust ESG strategies and ensure ESG continues to grow in importance at pace throughout EU-mandated entities.  There is also an economic reality. Renewable energy is now the lowest-cost option for new electrical generation globally, so it’s not surprising that China has scaled up its renewable capacity significantly. Two-thirds of global utility-scale solar and wind power currently under construction is located in China. Nature is not optional For many Irish businesses in 2025, integrating nature and biodiversity impacts and dependencies into their decision-making processes is no longer optional. This year, the introduction of nature-related EU regulations, such as the Nature Restoration Law, will pressure corporations to make nature-based disclosures. This is expected to increase momentum behind voluntary nature-based disclosure frameworks such as the TNFD and target setting through the Science Based Targets Network (SBTN). This year will also see an expansion in efforts to define a set of universal ‘state of nature’ metrics, an increase in the integration of climate and nature transition planning and continued calls to close the nature finance gap and redirect nature-harming subsidies.  Russell Smyth is Partner and Head of Sustainable Futures at KPMG

The EU’s ViDA legislation represents a pivotal step toward modernising the VAT framework. Alex Baulf delves into the details It is fair to say that the VAT system across the European Union (EU) has become increasingly misaligned with the realities of 21st-century commerce. In an age defined by cross-border transactions, digital innovation and rapid market shifts, the current system serves neither businesses laden with complex compliance requirements, nor governments exposed to fraud and evasion. A fundamental overhaul has long been overdue. Enter the VAT in the Digital Age (ViDA) legislation, a landmark reform passed by the European Parliament in late 2024. ViDA represents a pivotal step towards modernising the VAT framework, addressing inefficiencies and embracing the demands of a digital-first economy. Though its approval was not without challenges—most notably opposition from Estonia, which voiced concerns about its implications for supplier economies—the legislation's eventual passage signals widespread agreement on the need for change. ViDA is not just a tightening of VAT rules or a regulatory clampdown on digital platforms like Airbnb and Uber. It is a transformative initiative. At its heart lies the embrace of e-invoicing. Changing the way businesses and tax authorities interact and promising unprecedented efficiency, greater compliance, and a robust defence against VAT fraud, e-invoicing is the centrepiece of a forward-thinking system built for the future. However, for Irish businesses, this transformation is not just an opportunity—the benefits of ViDA come with significant strategic and technological demands, requiring immediate preparation to ensure a smooth transition into this new digital age. A game-changer for businesses? E-invoicing is set to become the default system for cross-border transactions by 2030. Unlike traditional paper or PDF invoices, e-invoices are machine-readable, consistent, and embedded with rich, structured data. This allows businesses to automate their invoicing processes entirely, from receipt to validation and posting—a touchless system created to potentially save time and reduce errors. The traditional invoicing landscape, characterised by fragmented platforms and manual processes, has long been a burden for businesses, especially SMEs. A supplier with multiple customers often has to log into several different procurement systems and platforms to send invoices, an inefficient and costly approach. On the other hand, e-invoicing promotes interoperability through open networks, meaning businesses no longer need to rely on proprietary legacy systems. With tax authorities becoming intermediaries in the invoicing process, VAT compliance is integrated into real-time operations. This represents a profound shift, as tax authorities will now receive, review, and even deliver customer invoices. Italy's model, where the tax authority handles centralised distribution, sets the standard for how seamless this process can become. Why governments are embracing e-invoicing Governments are increasingly prioritising e-invoicing because of its potential to close the VAT gap, which currently sits at a staggering €61 billion annually in the EU alone. By enabling live reporting, tax authorities gain granular, real-time insights into transactions, making it easier to detect fraud and errors. Latin America has long adopted e-invoicing, demonstrating its effectiveness in increasing tax revenues and enhancing compliance. Europe is now catching up, with France, Spain, Romania, Poland, Belgium and Germany already announcing mandates ahead of the EU-wide 2030 deadline for intra-community digital reporting. According to the OECD, e-invoicing represents a “win-win”, offering higher revenue recovery for governments while making compliance simpler and less costly for businesses. The hard work begins The passage of ViDA is not the start of the journey—it is the finishing line for legislative approval. However, for businesses that have not already prepared, it marks the beginning of an urgent race to do so. E-invoicing may bring immense benefits, but implementing it requires strategic planning and technological investment. A recent study revealed that 55 percent of companies doubt their current ERP systems can support compliant e-invoicing. This underscores the need for a global, scalable solution rather than relying on disparate local systems or vendors. The shift to e-invoicing also demands significant changes to financial operations, IT infrastructure, and supplier relationships. Businesses that start preparing now will gain a competitive edge. Early adopters will ensure compliance and unlock efficiencies that can drive growth. Those who delay risk being overwhelmed by the complexity of new regulations and the technological demands of the system. A VAT system for a digital economy ViDA represents a long-overdue modernisation of VAT, aligning it with the realities of a digital and globalised economy. By introducing standardised e-invoicing, digital reporting requirements, and streamlined VAT registration processes, it simplifies business compliance and strengthens tax authorities' ability to combat fraud. But beyond compliance, ViDA offers businesses the tools to operate more efficiently and transparently. ViDA is a bold step forward, signalling the EU’s commitment to a more efficient, fair, and technologically advanced tax system. By acting now, businesses can position themselves as leaders in this new era, ready to reap the rewards of a modern VAT system. Alex Baulf is Vice President at Avalara