E-invoicing from April 2029: what VAT-registered businesses need to know
From 1 April 2029, VAT invoices must be issued and received as e-invoices in a standard format, over the Peppol network. The full rules arrive by April 2028.
Budget 2025 announced that e-invoicing would become mandatory for VAT invoices from 2029. Budget 2026 publishes the roadmap. From 1 April 2029, VAT-registered businesses, including public bodies, will need to issue and receive VAT invoices as e-invoices unless an exemption applies.
What counts as an e-invoice
An e-invoice is not a PDF. It is structured data, created by one system and read directly by another, with no retyping. The UK will use Peppol, an international framework already used across Europe and beyond, so that businesses on different software can exchange invoices.
The roadmap
- Oct 2027 – Apr 2028Government confirms the full requirements, at least 12 months ahead
- Apr 2028 – Apr 2029Software ready; businesses test sending and receiving
- 1 Apr 2029E-invoicing required for VAT invoices
Why it is worth starting early
E-invoicing removes typing, scanning and chasing. Invoices arrive in the right format, match to orders and post themselves, and suppliers are paid on time. HMRC has also consulted on using e-invoice data for digital reporting, which could in time pre-fill parts of the VAT return.
Five steps for the next two years
- List how invoices are raised and received today, and by whom.
- Ask your accounting software provider about its Peppol plans.
- Clean supplier and customer records: VAT numbers, addresses, contacts.
- Talk to your largest customers and suppliers about their timetables.
- Treat it as a process change, not only a software update.
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This insight is general information, not advice for your circumstances. Talk to us before acting on it.