Xero launches Irish VAT solution, saving accountants time on their most demanding returns

Irish accountants and bookkeepers can now prepare VAT 3 and Return of Trading Details (RTD) submissions in one connected workflow with no extra tools required, as part of a new Irish VAT solution launched today by small business accounting platform Xero.

The new solution removes the friction for Irish accounting and bookkeeping practices that comes from piecing together VAT compliance across multiple tools. They can now save time by minimising manual entry on individual VAT 3 returns and on the annual RTD, because information flows into the returns directly from transaction data in Xero.

The launch responds to a long-standing workflow problem for Irish accounting practices. Currently, they have to manage Revenue requirements, reverse charges and annual RTD reconciliation through a mix of tools and manual workarounds. RTD preparation is especially painful: it requires accountants to look back across a full year of VAT data, reconciling it period by period.

From today, practices can prepare VAT 3 and RTD submissions and populate Revenue Online Services (ROS) ready to file. This first phase focuses on reducing time-consuming, manual preparation work.

Adam Brewer, Regional Manager for Ireland at Xero, says: “Accountants shouldn’t have to use multiple tools just to complete their most routine compliance returns. VAT 3 and RTD are core parts of compliance in Ireland, but for too many practices the process has been too fragmented, too manual and too time-consuming.”

The solution enables accountants and bookkeepers to:

—  prepare, review and export VAT 3 returns for submission through ROS, with figures coming straight from what’s already in Xero so there’s no need to enter them twice
—  compile the annual RTD automatically from the same figures, rather than going back through months of records manually
—  apply Irish VAT rates that are already built in, from the first invoice raised
—  handle EU and reverse charge VAT, with cross-border figures landing in the right place on both the VAT 3 and RTD automatically
—  drill into the transactions behind any figure before filing, with every supporting invoice and receipt stored alongside it
—  work on whichever basis their clients use – cash receipts or invoice basis – reflecting how Irish businesses actually account for VAT.

“Irish accounting practices are under pressure to deliver more for clients while managing increasingly complex compliance,” adds Brewer. “For many small businesses, their accountant is the closest thing they have to a finance director, but that relationship only thrives when practices have time for it. Hours spent on manual compliance are hours not spent on advice, planning, and the conversations that help businesses grow. Our goal is to give accountants and bookkeepers some of that time back.”

“For Irish small businesses, the impact of simpler VAT compliance can go beyond the return itself. When accountants spend less time gathering, checking, and re-entering information, they have more time to help clients understand cash flow, plan ahead and make better decisions. At a time when many businesses are facing rising costs and tighter margins, giving practices more time for advice can strengthen the support small businesses receive throughout the year,” says Brewer.

The launch also reflects a broader direction for Xero in Ireland. As the country moves toward mandatory eInvoicing from 2028, Xero is building out the tools Irish practices need to make that transition smooth, starting with making VAT 3 and RTD compliance easier.

Xero’s Ireland VAT solution is available to accountants and bookkeepers from 14 September 2026. For more information, visit xero.com/ie.