Measure
The government published its implementation roadmap for mandatory e-invoicing of VAT invoices. VAT-registered persons (including public sector bodies) will be required to issue and receive VAT invoices as structured e-invoices from 1 April 2029, unless a specific exemption applies.
HMRC have also launched a separate consultation on e-invoicing digital reporting, exploring whether HMRC could in future receive or have access to selected structured e-invoice data to support tax administration.
E-invoicing is required for taxable transactions between VAT-registered entities requiring a VAT invoice. UK VAT-registered overseas businesses are treated the same as UK-based entities.
E-invoicing is optional for non-VAT-registered small businesses adopting it as best practice, and exempt, zero-rated or out-of-scope transactions between entities not requiring a VAT invoice.
Spring 2027: Primary legislation expected via Finance Bill 2026.
Spring 2027: Public technical consultation on e-invoicing standards.
October 2027 to April 2028: Detailed scope, exemptions, standards, guidance and business identifier requirements published.
1 April 2029: Mandatory e-invoicing for VAT invoices takes effect.
E-invoicing marks a significant step in digitalising UK VAT and modernising the UK business landscape. By simplifying invoicing, increasing automation, and improving data quality, it is intended to make tax compliance easier and more accurate, reduce manual processing and errors, and help businesses and public bodies operate more efficiently.