Revenue launches public consultation to modernise VAT reporting

Revenue has launched a public consultation seeking views about the modernisation of the value added tax (VAT) system, with a move to digital reporting of the tax.

After a budget announcement by Minister for Finance Michael McGrath earlier this week, Revenue has opened a public consultation on the introduction of real-time digital reporting for VAT, supported by electronic invoicing (eInvoicing).

Using digital technology to redesign how VAT is administered could “align compliance obligations more closely with normal business processes”, Revenue said in a statement.

It added that digital reporting wouldl reduce compliance costs, be more efficient for tax-compliant businesses, and enable Revenue to focus more effectively on combating fraud.

Davy Real Estate seeking €17m for cinema at Blanchardstown Centre

---

Grafton Street investment offers 6.34% yield at reduced price of €2.15m

---

Prime Dublin city office sees price cut for second time in bid for buyer

---

Intel considers Leixlip sale and a high profile departure at Brown Thomas

---

Recent years have seen many developed economies undertake reforms in this area, “providing plenty of international experience from which Ireland can learn”, according to Revenue.

At EU level discussions are currently under way on the European Commission’s VAT in the Digital Age (VIDA) proposals for similar developments for cross-border transactions between member states.

The initial public consultation, which runs until January 12th, will focus on the modernisation of business to business and business to government VAT reporting. It does not consider business to consumer (B2C) transactions.

Revenue is seeking the views of all VAT stakeholders, including businesses, accounting software providers, eInvoicing providers, tax practitioners, accounting firms, book-keepers, business and industry experts and any other interested people.

Minister McGrath welcomed the launch of the public consultation.

“With the continued advancement of technology it is important that the State continuously assesses its current operations to ensure that we are keeping pace with that advancement, and that we are fully availing of the opportunities available. I would encourage businesses and their representatives to engage with the public consultation and to have their say in the development of the future of VAT reporting and VAT invoicing processes.”