Navigating the UK’s e-invoicing consultation: What businesses need to know

As the UK government moves closer to embracing mandatory e-invoicingElectronic invoicing - widely referred to as e-invoicing - is the exchange of a digital document between a supplier and a buyer. E-invoices are issued, transmitted and received in a structured data format that enabled automatic and electronic processing. They contain data in a machine-readable format so that an AP system can read an invoice without manual data entry, leading to faster and more efficient invoicing., a recent public consultation was conducted to shape what this future could look like.

For businesses operating in or trading with the UK, this marks a significant turning point in digital tax compliance and preparation will be key.

The consultation at a glance

Launched by HM Revenue & Customs (HMRCHis Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes.) and the Department for Business and Trade (DBT), the consultation seeks feedback on:

• Standardising e-invoicing across UK businesses and the public sector.
• Determining whether adoption should be voluntary or mandatory.
• Exploring models for real-time digital reporting.
• Assessing the potential benefits and challenges of implementation

What this means for your business

If you’re a VAT-registered business, this consultation could impact:

• Invoicing processes: Standardisation of formats and digital submissions may require system upgrades.
• Technology integrations: ERPEnterprise resource planning (ERP) is a type of software that organisations use to manage main business processes. systems may need to connect with new government platforms or APIs.
• Compliance timelines: Depending on rollout strategy, large businesses could face earlier adoption deadlines than SMEs.

Now is the time to start reviewing your invoicing setup and identifying potential gaps.

Don’t wait – start preparing now

Although the consultation period is just the beginning, businesses should see this as an early warning to:

• Map current invoice workflows.
• Understand where digitalisation can improve efficiency.
• Speak with tax technology providers about scalable solutions.

Let us help you get ready

At Innovate Tax, we understand that preparing for e-invoicing isn’t just about compliance, it’s about finding the right solution that fits your business.

One of the most valuable ways we’re currently supporting clients is through vendor selection. With so many platforms and providers offering e-invoicing capabilities, choosing the right one can be overwhelming.

Whether you’re proactively planning for potential UK mandates or responding to changes elsewhere in your global footprint, we can help you make confident, informed decisions about your next steps.

If you’d like guidance on selecting the right e-invoicing vendor or want to explore your options, please get in touch.