You’ll be hearing a lot more about e-invoicing over the next few years. The government has confirmed that e-invoicing for VAT invoices will become mandatory from 2029.

The aim is to improve efficiency, reduce admin, and increase tax accuracy and revenue.

What does e-invoicing actually mean?

E-invoicing is the digital exchange of invoice data directly between a supplier’s and a customer’s accounting systems.

It’s important to note that:

• An e-invoice is not a scanned invoice, PDF, or email attachment
• Both the supplier and the customer will need compatible software
• Invoice data must be sent in specific, prescribed fields, allowing it to move automatically between systems

What’s been announced so far?

At Budget 2025, the government confirmed that from 2029:

• Business-to-business (B2B) and business-to-government (B2G) VAT invoices will need to be issued as e-invoices
• Real-time reporting of e-invoices to HMRC will also become mandatory at a later date (after 2029)

What happens next?

The government plans to publish a detailed roadmap setting out how mandatory e-invoicing will be introduced in the 2026 Budget.