UK E-Invoicing: Open Consultation

UK E-invoicing Consultation

HMRC has finally launched a consultation on e-invoicing, targeting both businesses and government departments. The consultation will last 12 weeks, it is open from 13 February to 7 May 2025, and it can be completed either by submitted a predefined form or by sending responses to an email address faccilitated for this purpose.

The consultation seeks feedback from businesses (UK or non-UK established), interest groups, representative bodies, industry bodies and individuals to better understand their needs and how HMRC can support the adoption of e-invoicing across sectors.

HMRC is taking steps towards improving business efficiency and modernizing its tax system with the introduction of e-invoicing as part of a broader package of reforms aimed at boosting the economy. The consultation aims to gather insights on how different approaches can integrate with business systems. The goal is to develop a UK-specific strategy that enhances business productivity by reducing administrative burdens and improving tax compliance. No immediate policy changes will result from the consultation, but responses will help shape future decisions. Key topics under consideration include various e-invoicing models (centralized or de-centralized), whether adoption should be mandatory or voluntary, the potential scope of a mandate, and the role of real-time digital reporting.

Find here access to HMRC's e-invoicing public consultation. 

UK E-invoicing: Policy Objectives

The UK government aims to promote e-invoicing to enhance business efficiency, improve tax compliance, and reduce fraud while also considering environmental benefits. The key objectives include increasing adoption by making implementation cost-effective, streamlining invoicing to lower administrative burdens and errors, enhancing security to prevent fraud, simplifying tax reporting through automation, and reducing the environmental impact by minimizing paper usage. The overall goal is to modernize the invoicing process and improve financial operations for businesses across the economy.

UK E-invoicing Standards

While there is no nationwide mandate, the National Health Service in England (NHS) requires its suppliers to use PEPPOL, a widely adopted international standard. PEPPOL enables smooth invoice exchanges across various regions, including the EU, Australia, Japan, and Singapore, allowing businesses to process invoices automatically and efficiently.

However, PEPPOL is just one of many e-invoicing frameworks. Different countries and industries adopt specific standards based on their needs. The UK government is not currently selecting a single standard but is seeking input on how standardisation could drive adoption and unlock greater benefits.