UK Consultation on e-invoicing

HMRC and the Department for Business and Trade (DBT) have published a joint consultation to understand how e-invoicing may align with businesses needs. HMRC and DBT are interested in responses from businesses of all sizes – whether they use e-invoicing or not – as well as interest groups, representative bodies, industry bodies and individuals. Input is requested as e-invoicing has the potential to both support businesses and tax administration.

HMRC and DBT therefore want to understand how differing approaches may integrate with business systems. This will support the development of a UK approach to e-invoicing that improves business productivity by reducing administrative burdens and helping businesses to get their tax right. The responses from businesses will be used to inform future decision-making.

The consultation requests input on how the UK government can support the increased adoption of e-invoicing. Topics that the government is interested in exploring include:

• Different models of e-invoicing
• Whether to take a mandated or voluntary approach to e-invoicing
• What scope of mandate might be most appropriate in the UK and for businesses
• Whether e-invoicing should be complemented by real time digital reporting

The consultation will run for 12 weeks from 13 February 2025 to 7 May 2025.