- HMRC is seeking feedback on e-invoicing implementation in the UK.
- The consultation will run for 12 weeks from February 13, 2025 to May 7, 2025.
- HMRC is seeking feedback on e-invoicing models, mandate vs voluntary adoption, scope of mandate, and real-time digital reporting.
- E-invoicing is a digital process that allows businesses to send and receive invoices electronically.
- Potential benefits of e-invoicing include cost savings, real-time financial overview, improved cash flow, reduced errors, enhanced fraud prevention, simplified tax season, and reduced carbon footprint.
- The UK government is exploring different e-invoicing models and considering various levels of government involvement to encourage broader adoption.
- Two main e-invoicing models are being considered: centralized and decentralized.
- In a centralized model, e-invoices are submitted to the tax authority.
- In a decentralized model, e-invoices are exchanged directly between businesses.
Source: taxilla.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
