What do I need to do to be ready for e-invoicing?

From 1 April 2029, new mandatory e-invoicing requirements will be introduced for VAT-registered businesses and organisations.

E-invoicing is more than simply emailing a PDF invoice. It involves the direct exchange of structured invoice data between the buyer's and supplier's accounting systems.

Who will be affected?

The rules are aimed at business-to-business (B2B) transactions where a VAT invoice is required.

Business type	What does it mean for you?
VAT-registered businesses invoicing other VAT-registered businesses (B2B)	Will need to issue e-invoices
VAT-registered businesses selling to private individuals (B2C)	No requirement to issue e-invoices for these consumer sales
Businesses receiving VAT invoices	Will need to be able to receive e-invoices under the new requirements
Non-VAT-registered businesses	Generally, outside the mandate, although they may need to consider how they receive invoices from suppliers

Why is this being introduced?

The Government hopes that e-invoicing will:

• Reduce administration and manual data entry

• Speed up invoice processing and payments

• Improve accuracy and reduce errors

• Help improve cash flow and record keeping

What should you do now?

There is no need to rush into buying new software. Many existing accounting software providers expect to include e-invoicing functionality within their packages, potentially at no additional cost.  However, it is worth reviewing your current invoicing arrangements and checking with your software provider whether your system will support the new requirements.

Further detailed guidance, including the technical requirements and exemptions, is expected over the next couple of years.

Our advice: Don't panic, but don't ignore it! We will keep clients updated as further information becomes available. If you are unsure how the changes will affect your business, please get in touch with us.  We are here to help.

Further reading: E-invoicing implementation roadmap