UK Budget 2025 Confirms Mandatory B2B E-Invoicing for 2029
The UK Budget 2025 has officially confirmed that mandatory B2B e-invoicing for VAT will commence on April 1, 2029. This announcement marks a shift from the current voluntary regime to a regulated digital standard, aligning the UK with broader global trends and the EU’s VAT in the Digital Age (ViDA) initiative.
Key Announcements
1. The Mandate Timeline
The Treasury has set a clear implementation date of April 1, 2029, giving businesses a substantial lead time to prepare. While the mandate comes into force in 2029, the detailed implementation roadmap—covering technical standards and scope—is scheduled for publication at Budget 2026 (November 2026).
2. The Likely Model: 4-Corner Peppol
Current indications suggest the UK will adopt a decentralised "4-corner" model (likely utilizing the Peppol network). Crucially, the initial rollout is expected without a requirement for real-time e-reporting to HMRC. This approach prioritises business interoperability first, potentially adding tax authority reporting (a "5-corner model") in a later phase.
3. Phased Introduction
The Budget announcement explicitly states that the mandate will apply to "all VAT invoices" from April 2029.
While the official text implies a single launch date for all businesses, industry experts anticipate that the Budget 2026 roadmap may introduce a phased approach (e.g., starting with Large Taxpayers) to ensure a smooth transition, similar to models seen in Belgium and France. However, until the 2026 roadmap is published, businesses should prepare for a broad 2029 deadline.
Action Points for Businesses
While 2029 may seem distant, the digital transformation required is substantial. Businesses should begin to:
- Review current ERP and billing systems for e-invoicing capabilities (specifically Peppol/EN16931 compliance).
- Monitor the Budget 2026 announcements for specific technical standards.
- Assess supply chain readiness, particularly if trading with partners in Belgium, France, or Germany, where mandates are arriving sooner.
There’s more you should know about e-invoicing in the United Kingdom –learn more about the new and upcoming regulations.
