UK Launches Consultation on E-Invoicing implementation by 2030

On 13 February 2025, the UK government began a 12-week consultation to discuss the future of electronic invoicing (e-invoicing) in UK. This consultation aims to gather input on various e-invoicing models, including both centralized and decentralized systems, and the possibility of making e-invoicing mandatory. Additionally, it will explore how e-invoicing can be integrated with VAT reporting systems, the potential for pre-filled VAT returns, and the timeline for implementation. The goal is to improve efficiency, reduce fraud, and enhance tax compliance. Businesses are encouraged to participate in the consultation to ensure their perspectives are considered. The final proposal is expected by November 2025, with potential full implementation by 2030.

Key takeaway

The UK’s consultation appears to be a step towards similar goals as the EU’s VAT in the Digital Age (ViDA) initiative, which aims to modernize and digitize VAT systems by 2030.

It would be advisable for businesses, particularly those already implementing e-invoicing systems in other countries, to actively engage in the consultation process to ensure their needs and concerns are addressed in the design and scope of a UK e-invoicing regime.

Reference

Electronic invoicing: promoting e-invoicing across UK businesses and the public sector