Introduction
The UK Government has announced that mandatory e-invoicing will be introduced for all VAT invoices from 2029, marking a significant step in the digitalisation of the UK VAT system. The below reflects the current position. However, further information is expected to be received as part of the 2026 Budget on 28 October 2026.
E-invoicing involves the digital exchange of structured invoice data directly between suppliers’ and customers’ financial systems. While e-invoicing is already available in the UK, it is not mandatory except in public procurement where all bodies covered by the Public Procurement Act 2023 are required to accept e-invoices which comply with BS EN16931 and NHS Supply Chain requires its suppliers to issue e-invoices through the Peppol network, and uptake outside of this has remained relatively low. The Government considers that greater adoption could improve efficiency, reduce manual processing and errors, and support faster payments.
What happens next?
The Government has committed to publishing an implementation roadmap at Budget 2026 (on 28 October 2026), with HMRC and the Department for Business and Trade continuing to engage with businesses, professional bodies and software providers as the detailed regime is developed.
Businesses should therefore monitor developments closely, particularly around technical standards, interoperability and integration with existing ERP and finance systems. Implementation costs, staff training and cybersecurity will also be important considerations as businesses prepare for the transition.
What can businesses do now?
Although the detailed requirements have yet to be finalised, businesses can begin assessing their readiness by:
- reviewing existing invoicing processes and identifying areas reliant on manual intervention or data entry;
- considering whether current finance and ERP systems are equipped for greater automation and digital invoice exchange;
- engaging with accounting software and ERP providers about their e-invoicing capabilities and future plans; and
- identifying potential systems, process, and training requirements ahead of implementation.
Early preparation will allow businesses to identify potential gaps and develop a clearer implementation plan once the detailed UK requirements are published.
Grant Thornton is well placed to support your business on its UK e-invoicing journey.
If you have any queries, we would be happy to discuss these upcoming changes with you.
Our team
About some of our tax experts
Aidan Lyons leads Grant Thornton’s Indirect Tax team in Northern Ireland, while William Tipping specialises in VAT and stamp taxes, advising businesses on compliance, transactions, restructuring and tax planning.
