During the recent UK Budget 2025, it was officially confirmed: the United Kingdom will introduce mandatory eInvoicing for all VAT invoices starting April 2029.

While this doesn’t come as a complete surprise, it marks a significant shift in the UK’s approach to VAT compliance and digitalization.

A decentralized model, without real-time reporting

What stands out is the structure the UK appears to adopt. Based on current indications, the system will follow a decentralized "4-corner model", where suppliers and buyers exchange invoices through certified service providers. The Peppol network is likely to play a central role here, as it has already been widely adopted across Europe.

Also noteworthy: it seems that this e-invoicing mandate will not include a requirement for real-time e-reporting to HMRC. This sets the UK apart from countries like Italy, France and Poland, where tax authorities are more directly involved in the invoice flow. It suggests the UK is taking a more gradual approach, aiming for standardization without adding immediate pressure on live data reporting.

What should organizations take from this?

Although the 2029 timeline may seem distant, organizations with UK VAT flows would do well to start evaluating their readiness. The upcoming roadmap, promised for Budget 2026, will provide further clarity. But some fundamentals are already clear:

structured e-invoice formats will become the standard
traditional PDFs will no longer be compliant, and
connection to a service provider infrastructure, likely via Peppol, will be essential.

From a practical standpoint, this means IT and tax teams should start aligning on how existing systems, workflows and data quality need to evolve. This is particularly relevant for businesses operating in multiple countries, where fragmentation of eInvoicing and reporting requirements remains a challenge.

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