E-invoicing consultation to be launched

Chancellor Rachel Reeves has announced measures to improve productivity, reduce fraud and close the tax gap. Electronic invoicing will “reduce administrative tasks, improve cash flow, boost productivity, introduce automation, and reduce errors in tax returns”.

E-invoicing is the process of creating, exchanging and storing invoice documentation in an electronic format. It is not simply a digital version of a paper invoice such as a PDF or Word invoice document, or scanned paper invoice. An e-invoice is a datafile that can be read by a computer system and is usually in an xml format. 

It is expected that the consultation will be launched at the Budget on 30th October 2024. Following the initial consultation, the Government will then need to put a plan together and IT systems will need to be tested. It’s thought it will take around three years to come into effect. 

Other countries across Europe, including Germany, Spain and France have introduced, or are in the process of introducing, e-invoicing requirements and the EU is intending to introduce mandatory e-invoicing as part of reforms in due course. 

With little information currently known, keeping an eye out for details following the Budget will be essential and allow you to prepare as early as possible. 

Last updated: 30th September 2024