Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

November 5, 2024
2024-2030

UK to publish e-invoicing consultation in early 2025

  • On 30 October 2024, the United Kingdom (UK) government confirmed that it will publish a consultation in early 2025 to establish standards for the adoption of electronic invoicing (e-invoicing) within the UK.
 

The Chancellor of the Exchequer, Rachel Reeves, delivered the UK Budget on 30 October 2024. It included an announcement about a consultation for the introduction of e-invoicing in the UK.

UK e-invoicing

The publication of the consultation will be eagerly awaited by many businesses. If the UK Government intends to create a digital value-added tax (VAT) system fit for the future, the introduction of e-invoicing is a crucial step. From a VAT digitalization perspective, the UK is not as far advanced as some other countries. The benefit of coming later to e-invoicing is that the UK can learn from the experience of other countries, tailoring the approaches that have been successful elsewhere to the UK's particular environment. Understanding and applying these learnings is expected to be a key objective of the Government consultation.

Global context

The UK announcement is just one of a series of similar measures being adopted and proposed globally. In the European Union (EU), it is the VAT in the Digital Age (ViDA) Proposals that include e-invoicing as one of the pillars. These proposals were agreed at the meeting of the Council of European Finance Ministers (ECOFIN) on 5 November 2024, where approval of the package from all 27 Member States was achieved. (For details, see EY Global Tax Alert, EU has finally reached agreement on VAT in the digital age (ViDA) proposal, dated 5 November 2024.)

Since the original ViDA announcement in December 2022, many EU Member States have introduced their own real-time reporting and e-invoicing requirements, with Belgium, France, Germany, Poland, Spain and others expected to launch requirements in the next few years. Businesses operating in the EU have therefore already had to ready themselves for the rules, including considering the data, systems, tax and commercial implications of the changes. These entities should now consider how the new UK requirements could impact their businesses.

* * * * * * * * * *
Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young LLP (United Kingdom) London

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor
 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more