Irish Revenue Updates VAT Group Rules: Key Changes for Cross-Border Businesses Effective 2026

• From 2026, Irish VAT group rules will only apply to Irish establishments; foreign establishments of the same entity are excluded.
• Supplies of services between Irish VAT grouped establishments and their foreign counterparts may now be subject to Irish VAT, potentially increasing VAT costs for partially exempt businesses.
• The new rules apply immediately to VAT groups created on or after 19 November 2025; existing groups have a transitional period until 31 December 2026.
• No changes for intra-entity supplies outside of a VAT group; these remain disregarded for Irish VAT purposes.
• Businesses with cross-border operations should review their VAT group structures and consider restructuring to mitigate potential VAT costs or take advantage of new VAT recovery opportunities.

Source: ogier.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.

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