Spotlight on: e-invoicing

You may have heard rumblings about Electronic invoicing, or e-invoicing for short, as it has long been mooted as a good thing to bring to Britain, with its proven benefits in boosting digital adoption and speeding up payment times.

So, what is it, and where does government stand on its introduction?

What is e-invoicing?

I’m going to use words from the official E-invoicing consultation to offer a definition:

‘E-invoicing is the digital exchange of invoice information directly between buyers’ and suppliers’ financial systems, even if these systems are different. E-invoicing automates the exchange of invoices between buyers and suppliers.’

Sounds good, right?

In view of the efficiency it delivers, e-invoicing has been introduced in a number of countries including Spain, Brazil and Singapore.

The UK is about to do the same.

The consultation referenced above, published earlier this year, asked the market for views, and in the November Budget it was confirmed that e-invoicing will be introduced as a mandatory requirement for VAT registered businesses from 2029.

How will it be introduced?

With a three year lead-in, the e-invoicing team, which is a joint departmental effort between HM Revenue & Customs and Department for Business and Trade, is already at work in readying rules, software, and the business population to ensure a smooth introduction.

There are a number of workstreams:

• A stakeholders group – is being formed that will meet monthly from Jan to June 2026 to co-create a roadmap, showing what tech/communications and policy is required in the lead up to e-invoicing go-live.  This group will be formed of accountants, business rep organisations, and software providers who are building the tools that will enable friction-free compliance.
• An expert working group – will focus on the technical elements required for successful deployment, going as detailed as code needed for systems to speak to each other.
• Deep dives – are being organised with sector groups that have specific e-invoicing needs such as the construction and financial services sectors.
• Webinars – will be hosted for small and large companies alike to offer briefings on progress and how businesses can start to prepare for mandation. If you are interested in attending webinars, please send a note to the engagement inbox -> einvoicingengagement@hmrc.gov.uk

This set of work is focused on a next milestone of an e-invoicing roadmap being published at the 2026 Budget.

E-invoicing will be deployed in the public and private sectors and at the Office of the Small Business Commissioner we are watching with interest in view of how this more efficient form of invoicing will lead to faster payment flowing.