E-invoicing announcement is big news for VAT registered businesses 

26 Nov 2025

The announcement today that e-invoicing will be mandatory for VAT registered businesses selling to UK business customers from April 2029 is a big step in the digitalisation of the tax system comparable to the introduction of Making Tax Digital, says the Chartered Institute of Taxation (CIOT). 

The CIOT is cautioning the government against rushing into mandatory e-invoicing, calling for the use of thresholds and staged implementation to try to mitigate the impact of such significant digital change.  

E-invoicing is a digital exchange of invoice information directly between the supplier and customer’s accounting systems; invoices sent electronically by email with a pdf or jpeg format attachment will no longer suffice.  

CIOT spokesperson Alison Kerrey said:  

“E-invoicing is a fundamental change for businesses. Invoices will likely need to be sent via digital software. The days of sending invoices as attachments to emails are coming to an end.  

“This goes further than Making Tax Digital, because it is not just digital record keeping, it is communicating digitally with customers and suppliers. We are particularly concerned that those businesses that only issue and receive a handful of invoices per year will face disproportionate costs. 

“The CIOT support moves to increase the adoption of e-invoicing. But if there is to be a mandate, there need to be real benefits to HMRC and UK businesses and sensible, realistic implementation.  

“Past digital projects have suffered from poor design and a lack of clear direction, leading to delays and last minute changes in the final months before implementation.  Businesses need lead time to have their systems ready and the systems need to work effectively to build confidence, especially small businesses who may be experiencing e-invoicing for the first time. It is vital that HMRC engage in clear and collaborative engagement with stakeholders, particularly in the early planning stages.  

“To take account of the breadth of UK businesses, the government should consider using thresholds and phased implementation to cascade such significant digital change over a sensible timeframe. Some voluntary VAT registered businesses, who face MTD in the next three years, will then also face e-invoicing from April 2029. Clarity on the detail is needed urgently, to avoid these businesses picking software to comply with MTD, then having to change again for April 2029.”  

Notes: 

  1. HMRC ‘digital-first’ includes e-invoicing: https://www.gov.uk/government/publications/hmrc-transformation-roadmap/hmrcs-transformation-roadmap 
  2. HMRC consultation ‘Promoting electronic invoicing across UK businesses and the public sector’: https://www.gov.uk/government/consultations/promoting-electronic-invoicing-across-uk-businesses-and-the-public-sector 
  3. CIOT e-invoicing consultation response: https://www.tax.org.uk/ref1470  
  4. LITRG e-invoicing response: https://www.litrg.org.uk/submissions/electronic-invoicing-promoting-e-invoicing-across-uk-businesses-and-public-sector 
  5. Tax Adviser article e-invoicing responses: https://www.taxadvisermagazine.com/article/electronic-invoicing-consultation