UK Budget 2025: VAT E-Invoicing, Digital Compliance, and Post-Brexit Tax Reforms Announced

• The UK Budget 2025 introduces VAT reforms focused on e-invoicing and new compliance rules to modernize the tax system and close the tax gap.
• From April 2029, all taxable persons must issue B2B and B2G VAT e-invoices, with further implementation details to be released in Budget 2026.
• New rules will prevent ride-sharing apps from misusing VAT schemes and remove customs duty relief on low-value imports, with uniform VAT for private hire vehicle operators starting January 2, 2026.
• Revised VAT grouping rules mean overseas establishments of UK VAT groups are treated as part of the UK group, eliminating reverse-charged VAT on certain intra-entity services, reflecting a post-Brexit approach.
• The reforms aim to support fiscal sustainability, digital modernization, and a fairer economic framework, with a continued divergence from EU tax regulations.

Source: vatabout.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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