- Ireland is replacing Fixed Direct Debit with Variable Direct Debit (VDD) for VAT payments starting August 2025.
- VDD allows automatic collection of the actual VAT balance on the due date, with deductions made on or around the third last working day of each month.
- The new system reduces underpayment risk, improves VAT liability visibility, and allows immediate access to VAT credits.
- VAT filing will shift from annual to bi-monthly periods, with reduced filing frequencies available for small businesses.
- The transition includes an awareness campaign in April 2025 and gradual rollout through April 2026.
Source: marosavat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Ireland"
- Irish VAT Grouping Rules 2025: Key Changes, EU Alignment, and Impact on Cross-Border Businesses
- Irish Revenue Restricts VAT Groups to Irish Establishments Only: Key Changes Effective November 2025
- Revised PEM Rules of Origin to Apply Exclusively from 1 January 2026
- Ireland Sets Phased Timeline for Mandatory B2B E-Invoicing and Real-Time VAT Reporting
- Calls for 0% VAT on Remedial Works for Homes with Defective Concrete Blocks in Clare
