Government seeks to standardise and increase adoption of e-invoicing
HMRC and Department for Business and Trade launch joint consultation, seeking views on increasing the uptake of e-invoicing by businesses
HMRC and Department for Business and Trade launch joint consultation on e-invoicing
On 13 February 2025, HMRC and the Department for Business and Trade launched a joint consultation, which will run until 7 May 2025. The aim of the consultation is to allow the Government to obtain feedback on the potential impact of e-invoicing on UK businesses, the benefits and challenges of e-invoicing, suggestions on the most appropriate e-invoicing model and further technical issues for consideration.
This announcement represents an important step forward in the Government’s tax digitalisation strategy and drive to close the tax gap. It is also worth noting that there are significant efficiency and productivity gains to be had from e-invoicing and the benefits that automation and AI can bring, and the consultation provides an opportunity for businesses to reflect on the potential benefits.
The key considerations of e-invoicing and the implications for businesses are summarised in this short video and recent article available on the KPMG Beyond platform (which is free to access).
Looking more widely, there are a number of countries where e-invoicing is already mandatory and this number will continue to grow throughout 2025, 2026 and beyond. KPMG in the US has published an e-invoicing developments timeline setting out the status of legislative developments around the globe.
Given the scope of these changes, we recommend assessing the impact of these measures on your systems, processes and VAT reporting needs. Several countries are already introducing digital reporting requirements which will become effective within the next year or so which means adopting an e-invoicing strategy which caters for both immediate and longer-term digital reporting requirements will be crucial. If you would like to discuss how e-invoicing could impact your organisation or to help shape your response to the consultation, please contact the authors or your usual KPMG in the UK contact.
