UK Confirms Mandatory B2B E-Invoicing from April 2029

The UK government has officially confirmed the introduction of mandatory electronic invoicing (e-invoicing) for all business-to-business (B2B) and business-to-government (B2G) VAT-related transactions, set to begin on 1st April 2029. This move, announced in the Budget 2025 and following a public consultation, marks a significant shift from the current voluntary system towards a fully digital tax administration, aiming to boost productivity, reduce the VAT gap, and align the UK with international digital trends.

Key Details of the Mandate
The mandate requires all VAT invoices to be issued as structured, machine-readable e-invoices, replacing traditional paper and PDF formats as valid VAT invoices. The government has outlined several key aspects of the new regime:

– The mandate applies to all B2B and B2G VAT invoices. Business-to-consumer (B2C) transactions are not included in the initial scope.

– UK will adopt a decentralised “4-corner” model, likely using the established Peppol network. This approach allows businesses to exchange invoices through their chosen software providers, fostering a competitive software market, rather than a single government platform like Italy’s SDI system.

– The initial rollout will focus solely on establishing the e-invoicing infrastructure. Real-time reporting of invoice data to HMRC (Continuous Transaction Controls, or CTC) is not part of the 2029 launch but may be considered in a later phase.

– While the go-live date is specified, a detailed implementation roadmap with technical standards, scope, and potential phased rollout (e.g., starting with large businesses) will be published at the Budget 2026 in November 2026.

What Businesses Can Do to Prepare Now
Even though April 2029 is several years away, the transition for a business with complex supply chains or legacy systems is substantial. Businesses should:

– Assess current Enterprise Resource Planning (ERP) and billing systems for their e-invoicing capabilities, specifically compatibility with international standards like Peppol/EN16931.

– Keep a close watch on the upcoming Budget 2026 for the detailed implementation roadmap and technical specifications.

– Start discussions with existing software and accounting providers about their plans to support the mandate.

– Early planning can turn a compliance necessity into an opportunity for broader business process modernisation and efficiency.