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Mandatory B2B e-invoicing as of April 2029

10 hours ago
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Government confirms April 2029 B2B mandate for e-invoicing exchange 4-corner; no e-reporting to HMRC requirement

✅ Mandatory E-Invoicing Confirmed

  • The UK government announced that mandatory e-invoicing for all VAT invoices will start in 2029. This was confirmed in the consultation response published on 26 November 2025.
  • The rollout will be phased, starting with large businesses and then expanding to SMEs.
  • The goal is to reduce late payments, improve tax compliance, and modernize the UK’s business landscape. Research suggests e-invoicing adoption can cut late payments by 20%, saving small firms around £11,300 annually and boosting productivity by 3% in finance-heavy sectors. [gov.uk], [p2pnetwork.org]

Current Status

  • Consultation closed in May 2025; HMRC and the Department for Business & Trade have reviewed responses.
  • The government is working on technical standards, likely aligning with PEPPOL (used in NHS procurement) and interoperable formats like UBL/XML.
  • HMRC’s Transformation Roadmap targets a digital-first tax system by 2030, with e-invoicing as a key component. [blogs.opentext.com], [rayneressex.com]

Compliance & Requirements

  • Until the mandate begins, e-invoicing remains voluntary for B2B, but mandatory for public sector suppliers since 2020.
  • Accepted formats: Peppol BIS or UBL XML; invoices must be archived for 6 years.
  • Under Making Tax Digital (MTD), VAT returns already require API submission via compatible software, laying the groundwork for e-invoicing. [gov.uk], [openenvoy.com]

Context & Global Alignment

  • The UK’s move mirrors the EU’s VAT in the Digital Age (ViDA) initiative, which mandates e-invoicing for cross-border transactions by 2030.
  • Other countries (Italy, Poland, France, Belgium) are ahead, with mandates between 2024–2027, so UK businesses trading internationally should prepare early. [tradeshift.com]

What’s Next for Businesses?

  • Start planning for system upgrades to handle structured invoice formats (XML/UBL).
  • Consider Peppol connectivity and integration with ERP/accounting platforms.
  • Monitor HMRC updates for technical specifications and onboarding timelines.

See also

UK Budget: Mandatory e-invoicing confirmed for 2029
  • The UK government has announced that mandatory e-invoicing for all VAT invoices will be implemented by 2029, aimed at reducing late VAT payments and supporting the growth of small and medium-sized businesses. This initiative is expected to lead to a 20% reduction in late payments and a 3% increase in productivity within the financial sectors.
  • Research suggests that adopting e-invoicing systems will provide a return of 2.2 times the initial investment for smaller companies, while also simplifying compliance and improving the accuracy of data submitted to tax authorities. This is anticipated to benefit HMRC in collecting more VAT receipts and reducing the VAT gap, while enhancing transparency and cash flow for businesses.
  • The announcement follows a consultation period that gathered 342 responses from industry experts on various aspects of e-invoicing, including implementation timelines and models. A detailed roadmap for full implementation will be provided in the 2026 Budget, clarifying the steps businesses need to take to comply with the new e-invoicing mandate for both B2B and B2G transactions.

Source Innovate Tax

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