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Government consults on mandatory e-invoicing

February 17 2025

The government has launched a consultation on plans for the rollout of electronic invoicing (e-invoicing) in the UK.

The 12-week consultation is being jointly conducted by HMRC and the Department of Business and Trade (DBT) and will consider whether to make e-invoicing mandatory for businesses in the UK.

E-invoicing is the digital exchange of invoice information directly between buyers and suppliers.

The government said e-invoicing could help businesses get their tax right first time, reduce invoicing and data errors, improve the accuracy of VAT returns, help close the tax gap and save time and money.

It usually results in faster business-to-business payments, leading to improved cashflow and less paperwork, the government added. The 34-question consultation can be completed online.

James Murray, Exchequer Secretary to the Treasury, said: 'As part of the Prime Minister's Plan for Change, we have begun our work to transform the UK's tax system into one that is focused on helping businesses and the economy to grow.

'E-invoicing simplifies processes, reduces errors and helps businesses to get paid faster. By cutting paperwork and freeing up valuable time and money, it will help improve firms' productivity and their ability to grow and succeed.'

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