The Institute said e-invoicing is a key enabler of long-term economic growth through its ability to reduce system frictions and inefficiencies and boost business productivity.  ICAEW cited widely evidenced benefits to business to support the take up of e-invoicing, including increased productivity and cost savings, improved cash flow and faster payments, and enhanced tax compliance and revenue generation. 

Integration with broader economic data and enhanced financial reporting and corporate governance were additional benefits on which the government should focus, ICAEW said in its response.  

ICAEW said the initial approach should be a voluntary e-invoicing system, with mandatory rollout only after careful consideration. The successful implementation of e-invoicing standards, and particularly a mandated approach, will require careful planning, targeted support, and alignment with existing international standards said ICAEW.  

Several potential significant barriers to the uptake of an e-invoicing mandate were highlighted, particularly for SMEs, including the upfront cost of implementation, the disruption to workflows and client relationships, a lack of technical capacity and support, and uncertainty around standards and interoperability.  Free, government-backed training and clear technical guidance to help businesses, especially smaller ones, will help them navigate the transition more confidently and increase take-up. 

ICAEW said that it recognised the benefits of a mandatory approach to the adoption of e-invoicing. If agreed, it should be from 1 January 2030, to offer businesses clarity and ensure enough time to put in place the systems for adoption and compliance.  

It added that any material software or systems change will require a minimum of 24 months to implement. Consistent deadlines are vital, for both businesses and software providers, who make significant investments based on official timelines. 

Ed Saltmarsh, ICAEW Technical Manager, VAT and Customs said:  

“We are strongly supportive of the UK government’s exploration of encouraging the uptake of e-invoicing adoption, as a key enabler of long-term economic growth. The current lack of a co-ordinated policy puts UK businesses at a disadvantage through a lack of efficiency, trade interoperability and digital competition.  

“We believe a single shared e-invoicing standard, implemented through a proven framework, is essential for widespread UK adoption. A unified standard would significantly reduce complexity, lower implementation costs, and ensure interoperability between businesses and government bodies.” 

The latest episode of Tax Track, the podcast from ICAEW’s Tax Faculty, discusses e-invoicing. 

ENDS

Notes to editors: 

1. The full consultation response is available on request.