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UK announces mandatory e-invoicing by 2029

The Chancellor has announced that, starting in 2029, electronic invoicing will be mandatory for all VAT invoices issued for B2B and B2G.

However, the government has not yet made real-time transaction reporting to HMRC a requirement.

The introduction of e-invoicing in the UK was confirmed during the 2025 Budget announcement. As part of efforts to enhance productivity, the government stated that e-invoicing will become mandatory from April 1, 2029.

Following a consultation initiated in February of the same year, the government has committed to engaging extensively with stakeholders starting in January 2026. This engagement process aims to ensure that stakeholders' opinions and concerns are taken into account during policy development.

The final specifics of the e-invoicing system are anticipated to be disclosed during the 2026 Budget, after which a decision will be made.

Country update for United Kingdom
22 December 2025
Stay informed about the latest indirect tax developments in United Kingdom, including regulatory changes, compliance requirements, and indirect tax guidance affecting businesses operating locally and cross-border. This page provides a structured overview of country-specific updates, such as new legislation, reporting obligations, digital tax initiatives, and implementation timelines.
These insights help tax, finance, and compliance professionals anticipate regulatory changes, adjust processes and systems, and maintain compliant operations in United Kingdom.