The United Kingdom is considering regulations for e-invoicing and real-time VAT reporting

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vlag UK

The United Kingdom is contemplating the introduction of e-invoicing and real-time reporting regulations for value-added tax (VAT).

These regulations will establish the methods for invoice exchange and the specific data elements required for an invoice to be deemed valid. In pursuit of this objective, the government has released a consultation on e-invoicing, which will be open for 12 weeks, concluding on 7 May 2025.

Key Aspects of the Consultation

The Consultation aims to gather insights from various stakeholders regarding how the UK government can facilitate the broader adoption of e-invoicing.

The UK government is particularly interested in examining the following topics:

  • Various models of e-invoicing
  • The choice between a mandated or voluntary approach to e-invoicing
  • The most suitable scope of mandate for the UK and its businesses
  • The potential for e-invoicing to be enhanced by real-time digital reporting

The Consultation highlights the advantages of implementing e-invoicing, explicitly noting its potential to lower costs and administrative burdens, improve visibility, accelerate processing times and business cash flow, and minimize errors.

It is important to note that the Consultation does not aim to establish a specific standard or set of standards for adoption; instead, it seeks broader perspectives on how such standards could facilitate the adoption of e-invoicing and maximize its benefits.

What should businesses do now?

The UK e-invoicing Consultation presents a valuable opportunity for businesses to share their perspectives on the proposed e-invoicing framework in the UK and draw upon insights gained from implementing similar systems in other nations. As the timelines for implementation become more defined, it is essential to establish a comprehensive roadmap to assist businesses in their internal readiness efforts.

In jurisdictions where e-invoicing is currently operational or set to be introduced, adopting a comprehensive strategy for readiness planning is crucial. This strategy should, at a minimum, focus on ensuring high data quality, engaging the tax function early in the process alongside relevant stakeholders such as information technology (IT) and finance departments, and developing workstreams to determine the most suitable technology for the organization.

KGT is a SAP partner for PE services and SAP Build partner, and to become an SAP partner, strict due diligence requirements must be met, including having certified SAP consultants. You can find us at: https://partnerfinder.sap.com/profile/0001925409

SAP add-on via clearance model

Roadmap to Tax and IT function effectiveness

KGT SAP add-ons for SAF-T, e-invoicing and MTD UK for VAT work as a standalone application within the SAP system and do not change existing customer SAP functionality or processes. It is fully configurable with a custom namespace /KGT.

KGT partnered up with SAP regarding 'SAP Advanced Compliance Reporting for SAP HANA'. The 'Advanced Compliance Reporting' (ACR) service enables you to configure, generate, analyze, and electronically submit statutory reports that contain indirect taxes, such as value-added tax.

KGT also provides S/4 HANA transformation support.

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