Moving to Xero Compliance Ireland

What you need to do

There are two main steps:

1. Download the historical VAT3 records you need to keep before 7 February 2027.
2. Use Xero Compliance Ireland for your future VAT3 and RTD work.

Your historical Parolla Plugins VAT3 records will not automatically transfer to Xero Compliance Ireland.

1. Download your Parolla VAT3 records

You should download any historical VAT3 information that you need to retain before 7 February 2027.

Tax and accounting records generally need to be retained for six years, so make sure you have retained the reports and supporting transaction information required for your organisation.

VAT3 summary reports

Your VAT3 summary report contains the figures used to prepare the return, including T1, T2, T3, T4, EU acquisition and supply figures and postponed accounting information where applicable.

Open the relevant VAT3 return in Parolla Plugins and retain a copy of the completed report for your records.

Audit transaction reports

The Audit Transactions section contains the underlying Xero transactions used to calculate each VAT3 return.

This information can be exported to a spreadsheet, providing a detailed transaction record supporting the VAT3 calculation.

We recommend retaining both the VAT3 summary and the supporting audit transaction information for each return you need to keep.

2. Move to Xero Compliance Ireland

Xero Compliance Ireland provides VAT3 and RTD functionality directly within Xero.

You can begin using Xero Compliance Ireland for new VAT compliance work while continuing to access your existing Parolla Plugins VAT3 records during the transition period.

For information about setting up and using Xero Compliance Ireland, refer to the documentation provided by Xero.

Key dates

Frequently asked questions

Is Parolla closing?

No. This change relates specifically to the Parolla Plugins VAT3 service.

Parolla's other products and services are unaffected.

Why is the VAT3 service changing?

Xero engaged Parolla Plugins to provide a VAT3 facility for Xero's Irish customers on the Global Edition of the software. They have now introduced its own Irish VAT3 and RTD compliance product so that VAT compliance can now be completed directly within Xero.

Will my Parolla VAT3 history move to Xero Compliance Ireland?

No. Historical VAT3 records held in Parolla Plugins will not automatically transfer to Xero Compliance Ireland.

You should download the records you need to retain before 7 February 2027.

Can I continue using Parolla VAT3 for now?

Yes. Parolla Plugins VAT3 will remain available until 7 February 2027. However, we recommend you move to Xero Compliance Ireland for future VAT3 and RTD work.

This transition period gives you time to complete existing work, download your historical information and move future compliance work to Xero Compliance Ireland.

Do I need to download every transaction from Xero?

Your original accounting transactions remain in Xero. However, you should retain the Parolla VAT3 reports and audit information that you require as evidence of how your historical VAT3 returns were calculated.

What happens after 7 February 2027?

Parolla Plugins VAT3 will no longer be available after this date, so any records you require from the service should be downloaded beforehand.

From the 7th of February 2027 Parolla Limited will no longer have any legal basis for retaining information. We will have to delete all VAT3 information from our databases.

Need help?

If you have difficulty accessing or downloading your existing Parolla Plugins VAT3 records, please contact Parolla support before 7 February 2027.